Break-even Analysis Example for SIS
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SCHOLARSHIP INFORMATION SERVICES |
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| SELLING PRICE &VARIABLE COSTS: | 200X | 200Y | |
| Selling Price per unit | $26.00 | $24.00 | |
| Cost per Unit (product) (only variable cost) | $ 3.00 | $ 3.30 | |
| CONTRIBUTION MARGIN | $23.00 | $20.70 | |
| FIXED COSTS: | 200X | 200Y | |
| All operating expenses are assumed to be fixed costs: | $84,171 | $141,098 | |
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Break-Even Calculation: |
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BREAK-EVEN POINT IN UNITS: |
200X |
200Y |
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| Total Fixed Costs (divide by) | = | $84,171 | $141,098 |
| Contribution Margin | = | $23.00 | $20.70 |
BREAK-EVEN IN UNITS PER YEAR |
= | 3,660 units |
6,816 units |