Paragraph Styles BREAKEVEN ANALYSIS (refer to slides # 14-17) 3. Using the information in Ques. #1 A & B above: A) Compute the breakeven point for the following: 1. Total annual revenue of $5,400,000 2. Total annual revenue of $6,000,000 3. Total annual revenue of $4,800,000 B) compute the BE for each of the 3 selling prices given in #3 A above if the company has a profit goal of $50,000. This is a fixed profit goal so it impacts your fixed costs because it is not tied to # of units sold. (Use fixed costs from # 3A above) C) compute the BE for each of the 3 selling prices given in # 3 A above if the company has a profit goal of 10% of sales. This is fluctuating or variable profit goal that is tied to the # of units sold so it impacts your Variable Costs per unit which then changes your Cont. Margin. You will add 10% of each of the 3 selling prices to your VC/unit. Paragraph Styles BREAKEVEN ANALYSIS (refer to slides # 14-17) 3. Using the information in Ques. #1 A & B above: A) Compute the breakeven point for the following: 1. Total annual revenue of $5,400,000 2. Total annual revenue of $6,000,000 3. Total annual revenue of $4,800,000 B) compute the BE for each of the 3 selling prices given in #3 A above if the company has a profit goal of $50,000. This is a fixed profit goal so it impacts your fixed costs because it is not tied to # of units sold. (Use fixed costs from # 3A above) C) compute the BE for each of the 3 selling prices given in # 3 A above if the company has a profit goal of 10% of sales. This is fluctuating or variable profit goal that is tied to the # of units sold so it impacts your Variable Costs per unit which then changes your Cont. Margin. You will add 10% of each of the 3 selling prices to your VC/unit