What Is Break Even Analysis?
Fixed costs, like the rent for the stand, stay the same; lemons, sugar and cups are variable.
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1.Which cost stays the same whether Leo sells one cup or a hundred?
Fixed costs, like the rent for the stand, stay the same; lemons, sugar and cups are variable.
2.What is the contribution margin per cup at a price of 3 and a variable cost of 1?
Price minus variable cost: 3 minus 1 is 2, what each sale contributes toward the fixed costs.
3.What is the break-even formula in units?
Break-even units equal fixed costs divided by the contribution margin per unit; for the textbook firm 18,000 / 80 = 225.
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Sources (3)
- 3.2 Calculate a Break-Even Point in Units and Dollars (Principles of Accounting, Volume 2: Managerial Accounting) (OpenStax, Rice University)
- Ch. 3 Summary (Cost-Volume-Profit Analysis), Principles of Accounting, Volume 2 (OpenStax, Rice University)
- Eigene Rechnung: synthetischer Limonadenstand (Fixkosten 300 je Monat, Preis 3, variable Kosten 1 je Becher)
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