Break even Analysis Average price of each product/service sold : $149 Average cost of each product/service...
Break even Analysis
Average price of each product/service sold : $149
Average cost of each product/service to make/deliver(variable cost : $59.6
Fixed cost for the year : $227,000
Use the information provided above to calculate the break-even analysis for your company.
Round answers to the nearest whole number.
Percentage of price that is contribution margin :
Number of units sold needed to break-even:
Total sales needed to break-even:
Homework Answers
1.
| Selling price | $ 149.00 |
| Less: Variable cost | $ (59.60) |
| Contribution margin per unit | $ 89.40 |
| Percentage of price that is contribution margin ($89.40/$149) | 60% |
2.
| Number of units sold needed to break-even = Fixed cost / Contribution margin per unit |
| Number of units sold needed to break-even = $227,000 / $89.40 |
| Number of units sold needed to break-even = 2,539 Units |
3.
| Total sales needed to break-even = Fixed cost / Contribution margin ratio |
| Total sales needed to break-even = $227,000 / 60% |
| Total sales needed to break-even = $378,333 |
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Break even Analysis
Average price of each product/service sold : $149
Average cost of each product/service...
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