W05 Application Activity: Break-Even Analysis

Part 1: Type Your Refreshing Drink's Name Here:

For instructions, see your

Canvas course Modules -
W05 Application Activity:
Break-Even Analysis.

C = Correct
✓ Feedback Key:
A = Check Answer, Cell Referencing is Correct
CR = Check Cell Referencing, Answer is Correct
N = Not Correct
 Part 2: Annual Fixed Cost Part 3: Price and % of Demand

Neighborhood Market
Fixed Cost per Month

Price
Shop Rental

Utilities (power, water, trash) % of Demand

Annual Fixed Cost Part 4: Break-Even Point

Variable Costs $0.30

Break-Even Point
(# of cups sold)

Break-Even Point = Fixed Cost / (Price - Variable Costs

 Part 3: Price and % of Demand

Read
Price
Chart Range
Monthly Price Adjusted
Demand Demand 1
✓ ✓

0.9
January 276 -
0.8

February 617 -
March 1,069 - 0.7

Part 4: Break-Even Point 0.6

April 2,017 -

Amount (in Dollars)

✓ May 3,241 -
0.5

June 4,184 - 0.4

n Point = Fixed Cost / (Price - Variable Costs)

July 3,103 - 0.3
August 3,241 -
September 3,822 - 0.2

October 2,730 -
November 2,126 - 0.1
December 748 -
0
Beginning of 0
End of Year
Year
Total Units (Cups) Sold 0 -
Annual (Fixed and Variable) Costs $ - $ -
Annual Revenue $0 $ -
Annual Net Profit $ -
Profit Margin #DIV/0!
 Part 5: Yearly Cost & Revenue

0.9

0.8

0.7

0.6
Amount (in Dollars)

0.5

0.4

0.3

0.2

0.1

0
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Number of Cups Sold

Annual Costs (Fixed & Varable) Annual Revenue

0.8 0.9 1