Complete this breakeven problem - like the one in the document "Follow Along Notes by PDO for Breakeven" by filling in the attached worksheet and finishing the calculations below. Reading the document "Follow Along Notes by PDO for Breakeven" may be required for you to understand and complete this assigned Quiz. Break-even Problem EXHIBIT # 3 from ProStar Player Manual Table 16. Profit and Loss Statement for LAST FALL LAST 12 MONTHS DOLLARS Percent FIXED VARIABLE Cost Tot Rec Cost Product Sales $3,967,375 88.47% Service Income $516,872 11.53% $4,484,247 Total Receipts 100.00 Cost of Goods $3,007,189 67.06% 67,06% $960,186 Gross Margin 21.41% $1,477,058 32.94% $180,000 4,01% Gross Profit OPERATING EXPENSE Management Team Pull Time Labor Part time Labor $180,000 $256,000 5.71N $256,000 $130,000 3.08% 3.08% $10,700 0.24% 0.24% Overtime Labor Total Labor $584,700 13.04% $436.000 3.32% Max, Ins & Lic $45/680 1.02% $45,680 Depreciation $195,357 4.36% $195,357 Rent & Lease $20,584 0.46% 0.46% Ady & Pro $20,000 0.45 $20,000 Dist Eg Exp $72,714 1.629. 1.62% Maint & Rep S152,078 3.39 $18.435 2.98 Utilities $108,551 2.42% $2,400 2.37% Training $20,000 $20,000 Page 3 of 3 [12 month totals] FIXED Costs VARIABLE Costs As % of Total Receipts Cost of Goods Mngmnt Team Fulltime Lab Parttime Lab Overtime Lab Tax, Ins & Lic Depreciation Rent & Lease Adv & Promo Dist Eq Exp Maint & Rep Utilities Training Prof Sves Bad Debt Loss Misc. Exp. Operate Int. Interest Exp. TOTALS Steps 1: FC = $ and 2: VC= % or so. per Dollar of Total Receipts Step 3: CTO- $1.00 - $0. = $0. Per Dollar of Total Receipts Step 4: BEP - FC/CTO = $ /$ = $ Finally - Calculate the VOLUME REQUIRED for a Profit Goal of $10,000 Page 2 of 3 Purchased Services $102,400 22 2.119 $3,000 0.50 Bad Debt Low $22.421 0.504 Misc. Expenses 0.26 1.97% 0.25 Operate interest $11,132 0.25 Total Op Exp 32 203 1557 574572 $1.443.907 $33.151 0.74% Oper. Profit su 001 Other Income Interest Exp 574100 1.65 594,100 NIBT (540.500) -09 Complete this breakeven problem - like the one in the document "Follow Along Notes by PDO for Breakeven" by filling in the attached worksheet and finishing the calculations below. Reading the document "Follow Along Notes by PDO for Breakeven" may be required for you to understand and complete this assigned Quiz. Break-even Problem EXHIBIT # 3 from ProStar Player Manual Table 16. Profit and Loss Statement for LAST FALL LAST 12 MONTHS DOLLARS Percent FIXED VARIABLE Cost Tot Rec Cost Product Sales $3,967,375 88.47% Service Income $516,872 11.53% $4,484,247 Total Receipts 100.00 Cost of Goods $3,007,189 67.06% 67,06% $960,186 Gross Margin 21.41% $1,477,058 32.94% $180,000 4,01% Gross Profit OPERATING EXPENSE Management Team Pull Time Labor Part time Labor $180,000 $256,000 5.71N $256,000 $130,000 3.08% 3.08% $10,700 0.24% 0.24% Overtime Labor Total Labor $584,700 13.04% $436.000 3.32% Max, Ins & Lic $45/680 1.02% $45,680 Depreciation $195,357 4.36% $195,357 Rent & Lease $20,584 0.46% 0.46% Ady & Pro $20,000 0.45 $20,000 Dist Eg Exp $72,714 1.629. 1.62% Maint & Rep S152,078 3.39 $18.435 2.98 Utilities $108,551 2.42% $2,400 2.37% Training $20,000 $20,000 Page 3 of 3 [12 month totals] FIXED Costs VARIABLE Costs As % of Total Receipts Cost of Goods Mngmnt Team Fulltime Lab Parttime Lab Overtime Lab Tax, Ins & Lic Depreciation Rent & Lease Adv & Promo Dist Eq Exp Maint & Rep Utilities Training Prof Sves Bad Debt Loss Misc. Exp. Operate Int. Interest Exp. TOTALS Steps 1: FC = $ and 2: VC= % or so. per Dollar of Total Receipts Step 3: CTO- $1.00 - $0. = $0. Per Dollar of Total Receipts Step 4: BEP - FC/CTO = $ /$ = $ Finally - Calculate the VOLUME REQUIRED for a Profit Goal of $10,000 Page 2 of 3 Purchased Services $102,400 22 2.119 $3,000 0.50 Bad Debt Low $22.421 0.504 Misc. Expenses 0.26 1.97% 0.25 Operate interest $11,132 0.25 Total Op Exp 32 203 1557 574572 $1.443.907 $33.151 0.74% Oper. Profit su 001 Other Income Interest Exp 574100 1.65 594,100 NIBT (540.500) -09
