Please see the attached Word document for the assignment details. You will submit the assignment here (please no e-mail), by clicking on the underlined assignment name and attaching a Word or Excel document. An Excel file has been included to make the assignment easier to calculate; please use it.
MARKETING PRINCIPLES: MKTG 305
Break-even Assignment
Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following data and questions to gain a better understanding of this approach.
QUESTIONS
No. of Units | Allocated Fixed Costs | Variable Cost/Unit | Total Production
Cost |
Average Unit Cost | Unit Price | Total Sales Revenue | Gross Profit |
500 | $10,000 | $10 | |||||
1,000 | $10,000 | $10 | |||||
1,500 | $10,000 | $10 | |||||
2,000 | $10,000 | $10 | |||||
2,500 | $10,000 | $10 |