The document presents a break-even analysis for a proposed product from January 1, 2009 to June 30, 2010. It calculates that with fixed costs of $1,000, variable costs of $1.90 per unit, and a selling price of $12 per unit, the break-even point is 100 units or $1,188 in sales. A chart further illustrates the relationship between units produced, total costs, total revenue, and profit or loss.
The document presents a break-even analysis for a proposed product from January 1, 2009 to June 30, 2010. It calculates that with fixed costs of $1,000, variable costs of $1.90 per unit, and a selling price of $12 per unit, the break-even point is 100 units or $1,188 in sales. A chart further illustrates the relationship between units produced, total costs, total revenue, and profit or loss.
The document presents a break-even analysis for a proposed product from January 1, 2009 to June 30, 2010. It calculates that with fixed costs of $1,000, variable costs of $1.90 per unit, and a selling price of $12 per unit, the break-even point is 100 units or $1,188 in sales. A chart further illustrates the relationship between units produced, total costs, total revenue, and profit or loss.
The document presents a break-even analysis for a proposed product from January 1, 2009 to June 30, 2010. It calculates that with fixed costs of $1,000, variable costs of $1.90 per unit, and a selling price of $12 per unit, the break-even point is 100 units or $1,188 in sales. A chart further illustrates the relationship between units produced, total costs, total revenue, and profit or loss.
Variable Costs Variables Costs based on Dollar Amount per Unit Cost of Goods Sold $ 1.00 per unit Direct Labor per unit Overhead per unit Other (specify) per unit Sum: $ 1.00 Variables Costs based on Percentage Commissions 7.50% per unit Other (specify) per unit Sum: 7.50% Total Variable Cost per Unit (V) $ 1.90 Contribution Margin per unit (CM) = P - V $ 10.10 Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 84.2%
Break-Even Point Break-Even Units (X) X = TFC / (P - V) 100 units Break-Even Sales (S) S = X * P = TFC / CMR $ 1,188.12
Targeted Net Income
Targeted Net Income Before Taxes (NIBT) $ -
Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) 100 units Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR $ 1,188.12 Rate of return on sales before taxes = NIBT / S 0.0%
Tax Rate (T) 25%
Net Income After Taxes (NIAT) = (1-T)*NIBT $ - Rate of return on sales after taxes = NIAT / S 0.0%
Variable Costs Variables Costs based on Dollar Amount per Unit Cost of Goods Sold $ 1.00 per unit Direct Labor per unit Overhead per unit Other (specify) per unit Sum (Vd): $ 1.00
Variables Costs based on Percentage
Commissions 7.50% per unit Other (specify) per unit Sum (Vp): 7.50%
Total Variable Cost per Unit (V) V = Vd + (Vp*P) $ 1.89
Contribution Margin per unit (CM) = P - V $ 10.00 Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 84.1%
Break-Even Point Break-Even Price (P) P = (1/(1-Vp))*(Vd+(TFC/X)) $ 11.89 Break-Even Sales (S) S = X * P = TFC / CMR $ 1,189.19
Targeted Net Income
Targeted Net Income Before Taxes (NIBT) $ -
Sales Price (P) required to reach targeted NIBT $ 11.89
Sales required to reach targeted NIBT, S = X * P $ 1,189.19 Rate of return on sales before taxes = NIBT / S 0.0% Tax Rate (T) 25% Net Income After Taxes (NIAT) = (1-T)*NIBT $ - Rate of return on sales after taxes = NIAT / S 0.0%
Fixed Costs Start-up / Development Costs Development $ - Labor $ - Other start-up costs $ - Total Startup Costs (SC): $ -
Recurring Costs specified as $ per Month
Advertising $ - Web Host Fees $ - Other recurring costs $ - Recurring Costs (RC): $ - per month
Total Recurring Costs: $ -
Total Fixed Costs (TFC) = SC + RC * t $ -
Variable Costs Variables Costs based on Dollar Amount per Unit Cost of Goods Sold $ - per unit Direct Labor $ - per unit Overhead $ - per unit Other (specify) $ - per unit Sum: $ - Variables Costs based on Percentage Commissions 0.00% per unit Other (specify) 0.00% per unit Sum: 0.00% Total Variable Cost per Unit (V) $ - Contribution Margin per unit (CM) = P - V $ 5.00 Contribution Margin Ratio (CMR) = 1 - V / P = CM / P 100.0%
