XYZ Non-Profit Corporation (Appendix D)

Expenses for 2002 include: Fixed Costs

Rent and Utilities = $150.000.00

Telephone = $24.000.00

Management and other = $351.000.00

Other = $117.903.00

Total Fixed Costs = $642.903.00

Expenses for 2002 include: Variable Costs

Payroll and benefits = $417.004.00

Supplies = $125.101.20

Total Variable Costs = $542.105.00

Determining P (unit cost or price of service) and calculating B (the variable cost per client). Take the total agency revenue for 2002 $1.165.065.00 and divide that number by the total number of clients 5962. Total = $0000.1954.

Applying the BEP formula:

PX = A + BX

Where P = Unit cost or price of service

X = Amount of Service to be provided

A = Fixed Costs

B = Variable Cost per Client

How do you calculate the BEP?