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Break Even Analysis Assignme

How Much do we need to sell to Break Ev


Margin

The amount we charge over what we pay.

Markup

The % of what the margin is relative to what we paid


1-(cost/selling price)

Variable cost

1-markup(as a percentage)
What we pay for each unit we sell(dollar amount)

Fixed costs

Costs that do not change regardless of whether we sell anything

Fixed costs per year


Loan to pay computer
Website costs
Total

1000
66
$1,066.00

Monthly Charge for services

75

Costs per month to provide service


gas to get there and back

10

margin

Break Even

65.00

16.4

If the service has 50 clients that it does bookkeepping for each month, how much will they earn in 1 y
In Store DVD/CD Shop
Annual Fixed Costs
Rent
payroll
utilities
insurance

24000
16640
6000
2000

Total

48640

Average cost/cd/dvd

40%

Margin

60%

Break Even

81067

If sales are $120000 per year how much will they earned?

Online DVD/CD Shop


Annual Fixed Costs
Rent
website
utilities
insurance
total

0
200
0
0
200

Average cost/cd/dvd

40%

Margin

60%

Break Even

334

If sales are $120000 per year how much will they earned?

Break Even Analysis

Restaurant
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans

71360

2000
4000
700
300
300

119800

Total

7300

Daily Fixed costs


Margin
Break even per day

$243.33
0.75
$

324.00

If they decide they need to be more competitive and change the margin to .65, what will the break ev
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
Total
Daily Fixed costs
Margin

2000
4000
700
300
300
7300
$

243.33
0.65

Break even per day

If they purchase new equipment that will allow them to provide better service
and must pay an extra $100/month for it what will the new B.E. be?
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
Total

2000
4000
700
300
400
7400

Daily Fixed costs


margin

246.66
0.65

Break even per day

379.40

Comment on the net result these two moves have had on the business.

Plumber
Fixed costs Yearly

Truck
Equipment Loans
Desired annual sala
Gas
Total

10000
2400
50000
2500
64900

Weekly Fixed costs


Margin

1248.08
0.5

Break Even Per Week

2496.15

If the plumber lands a job for a $10000 bathroom, how many weeks can he go without landing anothe
If the plumber is able to land the following jobs:
Bathrooms

Kitchens

8
4
3
5
6
2

10000
7500
5000
10000
8000
20000

Total
How much profit will he make over the year?
198100

80000
30000
15000
50000
48000
40000
263000

alysis Assignment

ed to sell to Break Even?

example

Sandwich
Sandwich
cost
selling Price
0.95
$3.25

Fixed costs/Margin=break even units


Fixed costs/Markup=break even in dollars

uch will they earn in 1 year?

$2,184

Margin
$2.30
Fixed Cost
Rent/Day
$
10.00
$
10.00

Markup
0.707692

B/E
4.3
$ 14.13

5, what will the break even be?

374.3

Reducing costs are so that more customers come to my business and eventually become loyal.
At first, my profit would be less, but it will increase.
c

o without landing another job?

4weeks

ually become loyal.