Break Even Analysis Assignm

How Much do we need to sell to Break E

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

Monthly Charge for services

75

Costs per month to provide service

gas to get there and back

10

margin

Break Even

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

24000
16640
6000
2000

40%

Margin
Break Even

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

Online DVD/CD Shop

Annual Fixed Costs
Rent
website
utilities
insurance
total
Average cost/cd/dvd

0
200
0
0

40%

Margin
Break Even

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

Break Even Analysis

Restaurant
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
Total
Daily Fixed costs
Margin
Break even per day

2000
4000
700
300
300

0.75

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

2000
4000
700
300
300

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
Daily Fixed costs
margin

2000
4000
700
300
400

0.65

Break even per day

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
Weekly Fixed costs
Margin
Break Even Per Week

10000
2400
50000
2500

0.5

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

Kitchens

8
4
3
5
6
2

Total
How much profit will he make over the year?

10000
7500
5000
10000
8000
20000

nalysis 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

much will they earn in 1 year?

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

Markup
0.707692

B/E
4.3
$ 14.13

65, what will the break even be?

o without landing another job?