Question
I have to read an article called Expresso Espresso and use the information in the case to calculate the monthly breakeven in sales and units.
I have to read an article called "Expresso Espresso" and use the information in the case to calculate the monthly breakeven in sales and units. How muchwould Expresso Espresso need to increase its April sales or units to breakeven? Can anybody help?
Listed below are formulas that might prove helpful in the calculations. Clearly label and type the calculations (showing all work) with your name in the upper left-handcorner. You should be able to show both sets of calculations on a single page. BE in Sales = Fixed Cost/(1-COGS%)BE in Units = Fixed Costs/Contribution per unit Where CPU = Avg. Price per Unit Avg. Variable cost per Unit Avg. Price per Unit = Total Sales/Units Avg. Variable cost per Unit = COGS/Units
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