How many units will you have to sell to break

Assignment Help Finance Basics

Reference no: EM13323876

You are considering the start of a small business that sells generator gaskets. According to your market research, you can sell each gasket for $12. Your fixed costs for the business are estimated at $35,000 and you estimate your variable costs to be $6 per gasket.

Required:

How many units will you have to sell to break even in the business? Calculate the breakeven point in units, and then in dollars.

In order to make the business a worthwhile activity, you require a $20,000 profit. How many units would you have to sell to make this venture worthwhile?

Explain how breakeven analysis can be useful to the person starting a small business and/or to an existing small business.

Reference no: EM13323876

Questions Cloud

Determine the financial performance including revenue : Determine the financial performance including revenue, profitability, and ability to pay operational expenses of the restaurant based on the information provided on the financial statements.

Explain the owner wants to grow perch and needs : The owner wants to grow perch and needs the pH around 7.0. If the daily water flow into and out of the pond averages 30 m^3 per day with a pH similar to that of the pond, what is the minimum amount of limestone (CaCO3) needed to bring the pH

What is the equilibrium price and equilibrium quantity of : What is the equilibrium price and equilibrium quantity of bicycles in Wheelerville? Calculate the value of consumer surplus, producer surplus, and total surplus in this market.

What is the operating resistance of the lamp : what resistance would have to be connected in series with a 3V lamp in a 28 V circuit when the operating current of the lamp is .5 A

How many units will you have to sell to break : How many units will you have to sell to break even in the business? Calculate the breakeven point in units, and then in dollars and in order to make the business a worthwhile activity, you require a $20,000 profit. How many units would you have to..

Explain the average enthalpy of the reaction changed : How and why is the average enthalpy of the reaction changed when a different concentration of sodium hydroxide is used

Define corporate social responsibility : Define corporate social Responsibility

What is the electric force on the metal sphere : A metal sphere hangs from a string and has 4 kg of mass. The sphere has a charge of +2.3 µC. What is the electric force on the metal sphere if the magnitude of the electric field is 106 N/C

You know that the income elasticity of demand for doughnuts : You know that the income elasticity of demand for doughnuts is equal to 1.2 You read in the newspaper that the economy has entered a recession

User Account

All Pages