Breakeven Analysis

[Name]
Amounts shown in U.S. dollars
Unit Contribution Margin
Sales
Sales price per unit 12.50 Variable costs per unit
Sales volume per period (units) 1,000 Unit contribution margin
Total Sales 12,500.00

Variable Costs 4.90 ; 39%

Commission per unit 2.00
7.60 ; 61%
Direct material per unit 2.50
Shipping per unit 1.10
Supplies per unit 0.80
Other variable costs per unit 1.20
Variable costs per unit 7.60
Total Variable Costs 7,600.00

Unit contribution margin 4.90

Gross Margin 4,900.00

Fixed Costs Per Period Variable Costs Per Unit

Administrative costs 1,200.00
Insurance 500.00
Property tax 150.00
Rent 800.00 1.20 ; 16%
Other fixed costs 750.00 Commission per unit
Total Fixed Costs per period 3,400.00 2.00 ; 26% Direct material per unit
0.80 ; 11% Shipping per unit
Net Profit (Loss) 1,500.00 Supplies per unit
1.10 ; 14%
Other variable costs per unit
2.50 ; 33%

Results:
Breakeven Point (units): 694
Sales volume analysis:
Sales volume per period (units) 0 100 200 300 400 500 600 700 800 900 1,000
Sales price per unit 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50
Fixed costs per period 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00 3,400.00
Variable costs 0.00 760.00 1,520.00 2,280.00 3,040.00 3,800.00 4,560.00 5,320.00 6,080.00 6,840.00 7,600.00
Total costs 3,400.00 4,160.00 4,920.00 5,680.00 6,440.00 7,200.00 7,960.00 8,720.00 9,480.00 10,240.00 11,000.00
Total sales 0.00 1,250.00 2,500.00 3,750.00 5,000.00 6,250.00 7,500.00 8,750.00 10,000.00 11,250.00 12,500.00
Net profit (loss) (3,400.00) (2,910.00) (2,420.00) (1,930.00) (1,440.00) (950.00) (460.00) 30.00 520.00 1,010.00 1,500.00
Lower price

4
600

Page 2
Higher price

6
450

Page 3
 Breakeven Analysis Chart
14,000.00

12,000.00

10,000.00

8,000.00

6,000.00
Fixed costs per period
Total costs
Dollars

4,000.00 Total sales

Net profit (loss)
2,000.00

0.00
1 2 3 4 5 6 7 8 9 10 11

(2,000.00)

(4,000.00)

(6,000.00)

Sales Volume (Units)