BreakEvenAnalysis

Breakevenpoint(units): 30,244.00
Breakevenpoint(total
sales):
151,223.00
Basedonourstartupcosts,fixedcosts,thepricetomakeourproductwhichis$10perunitandour
sellingpricewhichis$15perunitourcompanywillbreakevenat52,000unitssold.
Yourbreakevenpointiswhereyourprofitequalszero.Aslongasyourgrossmarginis
greaterthanzero,everyunitsoldafteryouhavereachedyourbreakevenpointwilladdto
yourprofitability.Ifyourgrossmarginislessthanzero,regardlessoftheunitssold,thereis
nobreakevenpoint.
BreakEvenAnalysisSummary
VariableCost $10.00perunit
FixedCost $151,223.00
ExpectedSales 15,000units
Price $15.00perunit
TotalRevenue $225,000.00
TotalVariableCosts $150,000.00