College Finance Level 1 - Forecasting for Financial Planning

SUS Appliance toasters sell for $20 per unit, and the variable cost to produce them is $15. SUS estimates that the fixed costs are $80,000. a. Compute the break-even point in units. Break-even point toasters b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved. (Do not leave any empty spaces; input a 0 wherever it is required.) Sales -Variable costs Contribution margin -Fixed costs Total operating profit (loss)