Answer
Breakeven Point (in units) = $21,466.67 \div $15 ≈ 1,431.11
Work Step by Step
Employee Compensation per Sale = 15% $\times$ Selling Price = 0.15 * 20 = 3
Total Fixed Costs = Rent + Manager's Cost
Total Fixed Costs = $800 + (40,000 \times 0.5) + (40,000 \times 0.2\div12) = 21,466.67$
Contribution Margin per Unit = Selling Price - Variable Cost per Unit (Wholesale Cost)
Contribution Margin per Unit = 20 - 5 = 15
Breakeven Point (in units) = Total Fixed Costs $\div$ Contribution Margin per Unit
