Calculate the break-even point if demand is 20,000 shirts at a cost of .50 per shirt. Monthly...
Question:
Calculate the break-even point if demand is 20,000 shirts at a cost of .50 per shirt.
Monthly expenses:
Transit station rent $2,800
Delivery van 500
Station Customer Service Rep. 5,544
Driver 528
Fuel 165
Business Insurance 100
Office customer service rep 4,000
Laundry Bags 167
Monthly Expenses $13,804
Break-even Point:
The break-even point is the point wherein the gross profit or loss is equal to zero. It is calculated by dividing the total fixed cost by the contribution margin per unit. The contribution margin per unit is equal to the selling price per unit if there are no variable costs incurred.
Answer and Explanation: 1
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View this answer| Transit Station | 2,800 |
| Delivery Van | 500 |
| Station Customer | 5,544 |
| Driver | 528 |
| Fuel | 165 |
| Business Insurance | 100 |
| Office Customer Service Rep. | 4,000 |
| Laundry bags | 167 |
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How to Calculate the Break-Even Point - Definition & Formula
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Chapter 5 / Lesson 28
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See how to calculate break-even point (in units and dollars). See the variables of the break-even point formula and examples. Understand the purpose of break-even analysis.
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