Fixed Costs

Based upon my general business knowledge, a retail store business focused primarily in selling products directly to consumers; Any sales representative who understands the costs of each DVD and the profit margin can operate or work in the business. However, in running of any form of business, there are variable and fixed costs associated. Below are a list of fixed and variable costs associated wit the retail business of selling movie DVDs:

Fixed Costs: Salaries, insurance, rent.

Here's a monthly estimation:

Supervisor Salary: 5,000

Insurance: 3,500

Depreciation: 600

Property taxes: 2,000

Total fixed costs: 11,100

Variable Costs

Variable costs are expenses that vary in proportion to the quantity of output. These are some variable costs that I came up with for a retail store that sell DVDs:

Cost of DVDs purchased for sale to customers: $2,000

Cost of packaging: $200

Cost of Labor: $1,500

Credit Card Fees: $150

Depreciation: 600

Property taxes: 2,000

Total fixed costs: 11,100

Given the fixed and variable costs your team has identified and agreed upon, compute the break-even point for this business in either units or dollar sales.