A Breakeven Point is where the company stops losing money and starts to make money Where this point is depends on the variable and fixed expenses for the company Variable profit per unit is selling price per unit minus variable cost per unit. The breakeven point is total fixed costs divided by the profit per unit Income (loss) is the number of units times the variable profit per unit, minus total fixed costs Show your work Assume that you work for a company that makes sandwiches and you want to find out how many sandwiches they have to sell to start making money. The fixed expenses for a company are those expenses that do not change in the foreseeable future and also do not change based on the amount of goods produced. The company's expenses for last year are. Bread Building Maintenance Deli Workers Hourly Labor Store Rent Ham/Turkey/Roast Beef/Lettuce Insurance $ 3,300 $ 6,860 $ 11,000 $ 18,000 $ 49,500 $ 2500 Last year they sold 22,000 sandwiches. Assume that the company sells the sandwiches for $4.50 each 1. What are the variable costs per sandwich? 2. What is the company's variable profit per sandwich? 3. What is the company's Break-Even Point in units? 4. How much money would the company gain or lose in total if they sold 16,500 sandwiches? 5. How much money would the company gain or lose in total if they sold 19,800 sandwiches