This document presents a breakeven point analysis showing the units sold, costs, revenues, and contribution margin at different production levels. The breakeven point is reached at 333 units, where total revenues equal total costs. Above this point, the company begins to cover its fixed costs and make a profit.

1. Breakeven Point Analysis
Units Cost Per Variable Fixed Total Contribution
Sold Unit Costs Cost Retail BEP Costs Revenues Margin CM Ratio
250 100 25,000 50,000 250 75,000 62,500 (12,500) -20.00%
320 100 32,000 50,000 250 82,000 80,000 (2,000) -2.50%
333 100 33,334 50,000 250 83,334 83,334 0 0.00%
334 100 33,400 50,000 250 83,400 83,500 100 0.12%
400 100 40,000 50,000 250 90,000 100,000 10,000 10.00%
750 100 75,000 50,000 250 125,000 187,500 62,500 33.33%
1,000 100 100,000 50,000 250 150,000 250,000 100,000 40.00%
1,250 100 125,000 50,000 250 175,000 312,500 137,500 44.00%
1,500 100 150,000 50,000 250 200,000 375,000 175,000 46.67%
2,000 100 200,000 50,000 250 250,000 500,000 250,000 50.00%
Kevin R Callahan
06/20/2010 1
Copyright © 2009