Pretend you are entrepreneur or consultant managing a small business whether retail/accounting firm. Travel agency, financial consultant, small retail store, food chain or an auto workshop.

You have to estimate the costs:

Fixed costs Estimate on a total basis (Give some examples of fixed costs)

Variable costs Estimate on a per unit basis

List all individually.

What would be your revenues (on a per unit basis)?

The following is required:

1. Calculate the breakeven point in terms of number of units (quantity)
2. Calculate the breakeven point in terms of dollar amounts
3. What if you want to calculate the number of units that gives you an operating income of $10,000?

Thanks.