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    Break-even analysis is used to determine the number of units that must be sold to cover total costs. The break-even point for this company is 2880 units, where total revenue equals total costs. Fixed costs are $14,400 and variable costs are $20 per unit. Units must be sold above 2880 for the company to make a profit.

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    Break-even analysis is used to determine the number of units that must be sold to cover total costs. The break-even point for this company is 2880 units, where total revenue equals total costs. Fixed costs are $14,400 and variable costs are $20 per unit. Units must be sold above 2880 for the company to make a profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    153 views1 page

    Break

    Uploaded by

    man319
    Break-even analysis is used to determine the number of units that must be sold to cover total costs. The break-even point for this company is 2880 units, where total revenue equals total costs. Fixed costs are $14,400 and variable costs are $20 per unit. Units must be sold above 2880 for the company to make a profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    Break-Even Analysis

    Fixed Cost = 14400

    Variable Cost = 20 Per unit

    Selling Price = 25 Per unit

    Net Total
    units Total Fixed Variable Cost(FC+VC
    publish Revenue(price*units) Cost Cost(vc*units) ) Profit(TR-TC)
    0 0 14400 0 14400 -14400
    25 625 14400 500 14900 -14275
    50 1250 14400 1000 15400 -14150
    75 1875 14400 1500 15900 -14025
    100 2500 14400 2000 16400 -13900
    125 3125 14400 2500 16900 -13775
    150 3750 14400 3000 17400 -13650
    200 5000 14400 4000 18400 -13400
    225 5625 14400 4500 18900 -13275
    250 6250 14400 5000 19400 -13150
    300 7500 14400 6000 20400 -12900
    400 10000 14400 8000 22400 -12400
    500 12500 14400 10000 24400 -11900
    600 15000 14400 12000 26400 -11400
    700 17500 14400 14000 28400 -10900
    800 20000 14400 16000 30400 -10400
    900 22500 14400 18000 32400 -9900
    1000 25000 14400 20000 34400 -9400
    1200 30000 14400 24000 38400 -8400
    1400 35000 14400 28000 42400 -7400
    1500 37500 14400 30000 44400 -6900
    1600 40000 14400 32000 46400 -6400
    1700 42500 14400 34000 48400 -5900
    1800 45000 14400 36000 50400 -5400
    1900 47500 14400 38000 52400 -4900
    2000 50000 14400 40000 54400 -4400
    2100 52500 14400 42000 56400 -3900
    2200 55000 14400 44000 58400 -3400
    2500 62500 14400 50000 64400 -1900
    2600 65000 14400 52000 66400 -1400
    2700 67500 14400 54000 68400 -900
    2800 70000 14400 56000 70400 -400
    2880 72000 14400 57600 72000 0

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