Break-Even Analysis

May 7, 2013 Fixed Costs Production costs: Direct materials Direct labor Indirect production costs Selling expenses: Sales salaries & commissions Advertising Miscellaneous selling expense General expenses: Office salaries Supplies Miscellaneous general expense Totals Sales and Income data: Selling price per unit Expected unit sales Target operating income for the period Variable Costs $5.00 $10.00 $3.00 $1.50

$150,000 $200,000 $10,000 $25,000 $100,000 $6,000 $15,000 $506,000

$0.50 $20.00

$25.00 200,000 $25,000.00

Results Contribution margin per unit Unit sales at break-even point Dollar sales at break-even point Dollar sales at expected level Expected operating income Unit sales at target operating income Dollar sales at target operating income $5.00 101,200 $2,530,000 $5,000,000 $494,000 106,200 $2,655,000