Breakeven Analysis

Your client manages a daycare center. Costs are as follows:

Food costs $ 90

Rent 36,000

Salaries 80,000

Material costs 60

Taxes 20,000

Insurance 12,000

Miscellaneous 8,000

You currently charge $ 800 per month per child. You plan a profit of $ 25,000 per year.

Using the Breakeven analysis spreadsheet provided in the test instructions, complete the analysis and save the file as BE1. Submit via Canvas. Answer the following questions:

Total Variable Costs are:

60

150

90

None of the above

Total Fixed Costs are:

156,000

136,000

116,000

None of the above

Breakeven Point in Units per year are:

318

250

278

None of the above

Breakeven Point in Dollars per year

222,769

None of the above

250,000

220,478