BREAK-EVEN ANALYSIS

What is firm's profit? Fixed Cost Variable Cost Selling Price Unit Sold Profit 100,000 7 per unit 12 per unit 50,000 units 150,000

How many units should be sold to break-even?

Profit = SP . n - (FC + VC . n) Profit = 0 0 = SP.n - FC -VC.n n = FC / (SP-VC) 20,000 units need to be sold to make profit = 0 20000

d be sold to break-even?

to be sold to make profit = 0

INCOME STATEMENT Sales COGS Gross Profit Less: Operating Expenses Selling Expenses SGA Expenses Depreciation Expenses Fixed Expenses Total Operating Expenses Net Operating Income Other Income EBIT Less: Interest Expnese Interest on ST Debt Interest on LT Debt Total Interst Expenses EBT Less: Taxes 40% Net Earnings Less: Preferred Dividend Earning Available for Common Stock EPS @ 100 K shares Retained Earning Dividend Pmt

3358.71 1500 1859 275 225 100 75 675 1184 20 1204 10 50 60 1144 457 686 95 591 5.91 220 121

Selling Price Unit Sold COGS/Sale

1. Find the number of unit so 2. Find the expected selling p 3. When COGS increases to 1, the unit selling price to maxim 4. Firm would like to control C 1500 while want to maximize expect Selling Price and Unit

profit l noi den earning before tax vs inte

25.75 32.97375 100 101.8601 44.66% cau 1: 50.1753 selling =27.828 ( max/min profit nghia la noi den max/min EBIT) selling =33.57.. sua selling price va unit sold

ind the number of unit sold to make EBIT = 0 ind the expected selling price to earn 4$/share When COGS increases to 1,500. What would be unit selling price to maximize EBIT? irm would like to control COGS somewhere less than 00 while want to maximize its EBIT, what would it pect Selling Price and Unit Sold?

n earning before tax vs interest