Break Even Point Calculation

Plant Capacity
Past Year Operations
Avg Selling Price
Total Fixed Cost
Avg Variable Cost

2,000,000
1,500,000
$1.20
$520,000
$0.75

Contribution
Contirbition %
Break Even
Break Even

$0.45 per unit

37.5%
1,155,556 Units
1,386,667 Revenue

Units
Units
per unit
per unit

Break Even Point Calculation

Plant Capacity
Past Year Operations
Avg Selling Price
Total Fixed Cost
Avg Variable Cost

2,000,000
1,500,000
$1.20
$520,000
$0.75

Contribution
Contirbition %
Break Even
Break Even

$0.45 per unit

37.5%
1,155,556 Units
1,386,667 Revenue

Units
Units
per unit
per unit

Unit Capacity
Unit Achievement
Unit Sales Price
Total Sales Revenue
Variable Unit Cost
Total Variable Cost
Fixed Costs
Income
Income Taxes (50%)
Dividends
Retained
Contribution
Contribution
Break Even
Break Even

Line
1
2
3
4
5
6
7
8
9
10
11
Units
%
Units
Revenue

Aggregate
Product A
Product B
Last Yr. Next Yr. Last Yr. Next Yr. Last Yr. Next Yr.
2,000,000 2,000,000
1,500,000 1,750,000 600,000 400,000 400,000 400,000
$1.20
$1.16
$1.67
$1.67
$1.50
$1.50
$1,800,000 $2,028,000 $1,002,000 $668,000 $600,000 $600,000
$0.750
$0.621
$1.250 $1.375 $0.625 $0.688
$1,125,000 $1,086,250 $750,000 $550,000 $250,000 $275,000
$520,000 $640,000 $170,000 $170,000 $275,000 $275,000
$155,000 $301,750 $82,000 ($52,000) $75,000 $50,000
$77,500 $150,875 $41,000 ($26,000) $37,500 $25,000
$50,000
$75,000
$27,500
$75,875
$0.450
$0.538
$0.375
$0.464
$1,155,556 $1,189,275
$1,386,667 $1,378,200

Product C
Last Yr. Next Yr.
500,000
$0.40
$200,000
$0.250
$125,000
$75,000
$0
$0

950,000
$0.80
$760,000
$0.275
$261,250
$195,000
$303,750
$151,875

$0.420 $0.295 $0.875 $0.813 $0.150 $0.525

$0.251 $0.177 $0.583 $0.542 $0.375 $0.656
$404,762 $576,271 $314,286 $338,462 $500,000 $371,429
$675,952 $962,373 $471,429 $507,692 $200,000 $297,143

Product C only

Unit Capacity
Unit Achievement
Unit Sales Price
Total Sales Revenue
Variable Unit Cost
Total Variable Cost
Fixed Costs
Income
Income Taxes (50%)
Dividends
Retained
Contribution
Contribution
Break Even
Break Even

Line
1
2
3
4
5
6
7
8
9
10
11
Units
%
Units
Revenue

Product A only

1,500,000

1,750,000

$0.525
$0.656

$0.525
$0.656

Product B only

1,500,000 1,750,000 1,500,000 1,750,000

$1.67
$1.67
$1.50
$1.50
$0.80
$0.80
$1,200,000 $1,400,000 $2,505,000 $2,922,500 $2,250,000 $2,625,000
$0.275
$1.375
$1.375
$0.275
$0.688
$0.688
$412,500 $481,250 $2,062,500 $2,406,250 $1,031,250 $1,203,125
$640,000 $640,000 $640,000 $640,000 $640,000 $640,000
$147,500 $278,750 ($197,500) ($123,750) $578,750
$781,875
$73,750 $139,375 ($98,750) ($61,875) $289,375
$390,938

$0.295
$0.177

$0.295
$0.177

$0.813
$0.542

$0.813
$0.542

$1,219,048 $1,219,048 $2,169,492 $2,169,492 $787,692

$787,692
$975,238
$975,238 $3,623,051 $3,623,051 $1,181,538 $1,181,538