BREAK-EVEN ANALYSIS

Sales

AMOUNT

( 12,00,000+18,00,000)

30,00,000

Variable cost
Discount on cards

10%

Total

3,00,000
3,00,000

Fixed Cost
Rent

(2,40,000+2,40,000)

Salaries

(600000+600000)

Insurance

(1,20,000+1,20,000)

Advertisement

(1,20,000+60000)

Total
Contribution (Sales variable cost)

BEP (Fixed cost*sales/ Contribution)

4,80,000
12,00,000
2,40,000
1,80,000
21,00,000
27,00,000

23,33,333

Working notes
BEP Sales (Fixed cost*sales/ Contribution)=(21,00,000x30,00,000)/27,00,000=23,33,333

TR
Revenue

23,33,333

&cost

Sales (Output)

TC