Break Even Analysis

Break Even Analysis

You can calculate the number of units you must sell to break even (Break-even point) if you know the fixed expenses, the price per unit, and the expense (cost) per unit.

You have been hired by Thompson’s Clothing to create a data table that analyzes the break-even point for prices between $8.00 and $14.25 in increments of $0.25. To create a formula to calculate this you will need to know the fixed expenses, price per unit, and expense per unit. Assume the fixed expense is $800,000 Price per Unit is $8.50 and Expense per Unit is equal to $4.10. Enter the data and formula into a worksheet and then create the data table. Use the price per Unit as the input cell and the break-even value as the result.

On a second sheet using the same information, however the Expense per unit has gone up from $4.10 to $5.30. Please create a sheet similar to the first.

On a third sheet the Expense Per Unit has fallen from $4.10 to $3.85. Repeat the above.

Make sure your work is labeled correctly and your name is on it.

Save As: Break_Even_Analysis_YOUR NAME

Leave a Reply