BREAK-EVEN

The point at which the total costs of production equal the (profitable) revenue from selling the product is the breakeven point. To use break-even analysis effectively, a marketer should determine the breakeven point for each of several alternative prices. This makes it possible to compare the effects on total revenue, total costs, and the breakeven point for each price under consideration.

Be sure to watch both videos provided on Break-even before beginning this 1^st section of this lab.

For each of these four businesses, provide the UVC, $C, %C, total Fixed Costs, #BEP and $BEP.

INPUTS	WIDGETS	NELSON WHOLESALE	Fussy Pizza	ATA Luggage
USP	$ 15.00	$ 12.50	$ 10.00	$ 150.00
Variable Costs
Cost of Goods Sold				$ 75.00
Material & Labor	$ 10.00	$ 4.50	$ 3.75
Packaging			$ 0.50
Other expenses
Misc. expenses	$ 30,000.00	$ 10,000.00	$ 6,000.00
Equipment			$ 7,000.00
Sales Salaries				$ 36,000.00
OUTPUTS
Unit Variable Cost=
$Contribution
%Contribution
Fixed Costs
#BEP
$BEP

TWENTY FOUR CORRECT ANSWERS WORTH ONE POINT EACH