100%

Price (P): 1 $ 0.2500

Break-Even units (X): 325,415 units
Break-Even Sales (S): $ 81,353.73 [42]

Fixed Costs
Placeholder Category
Placeholder1 $ 6,000.00
Placeholder2 $ 2,500.00
Sum: $ 10,000.00
Placeholder Category
Placeholder1 $ 20,000.00
Placeholder2 $ -
Sum: $ 20,000.00
Total Fixed Costs (TFC) $ 30,000
Variable Costs
Placeholder Category
Placeholder1 $ 0.04 per unit
Placeholder2 $ 0.04 per unit
Sum: $ 0.09
Placeholder Category
Sum: 2.50%
Total Variable Cost per unit (V) V = Vd + (Vp*P) $ 0.0964
Contribution Margin per unit (CM) = P - V $ 0.1537
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 61.5%
Break-Even units (X) X = TFC / (P - V) 195,249 units
Break-Even Sales (S) S = X * P = TFC / CMR $ 48,812

Targeted Net Income USE AMOUNT

Targeted Net Income Before Taxes (NIBT) $ 20,000
Targeted Net Income Before Taxes (NIBT/S), % 30%
Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) 325,415 units
Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR $ 81,354
Rate of return on sales before taxes = NIBT / S 24.58%

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 BREAK-EVEN PRICE ANALYSIS

Number of units (X): 7,000

Break-Even Registration Fee (P): $ 6.23 per unit
Break-Even Sales (S): $ 43,628.55 [42]

Fixed Costs
Placeholder Category
Placeholder1 $ 6,000.00
Placeholder2 $ 2,500.00
Placeholder3 $ 1,666.67
Placeholder4 $ -
Placeholder5 $ -
Sum: $ 10,166.67
Placeholder Category
Sum: $ 20,833.33
Total Fixed Costs (TFC) $ 31,000
Variable Costs
Placeholder Category
Sum (Vd): $ 0.09
Placeholder Category
Sum (Vp): 2.50%
Total Variable Cost per unit (V) V = Vd + (Vp*P) $ 0.2060
Contribution Margin per unit (CM) = P - V $ 4.4286
Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 95.6%
Break-Even Point
Break-Even Price (P) P = (1/(1-Vp))*(Vd+(TFC/X)) $ 4.6345
Break-Even Sales (S) S = X * P = TFC / CMR $ 32,442

Targeted Net Income USE PERCENT

Targeted Net Income Before Taxes (NIBT) $ 100,000
Targeted Net Income Before Taxes (NIBT/S), % 25%
Sales Price (P) required to reach targeted NIBT $ 6.2327
Sales required to reach targeted NIBT, S = X * P $ 43,629
Rate of return on sales before taxes = NIBT / S 25.00%

Targeted Net Income Before Taxes (NIBT) $ 10,907

BREAK EVEN PRICE

Break-Even Price
Total Cost Total Revenue Profit (Loss) Targeted Profit
$100,000

$80,000

$60,000
1; Break Even Profit;
$32,442 $40,000

1; Targeted Profit;
$10,907 $20,000

$-

$(20,000)

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$(40,000)
$0.000 $2.000 $4.000 $6.000 $8.000 $10.000 $12.000 $14.000
 $-

$(20,000)

$(40,000)
$0.000 $2.000 $4.000 $6.000 $8.000 $10.000 $12.000 $14.000
Price (P)

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