# bus340 - SCTC would have to sell 12,818 units to break even...

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Jane Frances Kearns BUS 340 - Digital Portfolio Business Analysis, Spreadsheet Exercise: Performing a Breakeven Analysis and Sensitivity Analysis Company: Selmore Collectible Toy Company (SCTC) Sales Price Per Unit: \$100.00 \$125.00 Fixed Costs: Land \$44,500 \$44,500 Buildings \$392,500 \$392,500 Manufacturing Machinery \$572,000 \$572,000 Office Equipment \$212,800 \$212,800 Utilities \$30,500 \$30,500 Insurance \$80,700 \$80,700 Total Fixed Costs \$1,333,000 \$1,333,000 Variable Costs/Unit: Labor \$15.00 \$15.00 Advertising \$1.00 \$1.00 Shipping and Receiving \$5.00 \$5.00 Total Variable Costs/Unit \$21.00 \$21.00 \$79.00 \$104.00 16873.42 12817.31 Breakeven Points with Variations in Insurance and Labor Costs (Unit Price = \$100.00): Contribution Margin (Sales Price Per Unit - Total Variable Costs Per Unit): Breakeven Point (Total Fixed Costs/Contribution Margin): *** SCTC Would have to sell 16,874 units at \$100 per unit to breakeven, and would have to sell above 16,874 to begin to make a profit.

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Unformatted text preview: SCTC would have to sell 12,818 units to break even at \$125.00 per unit, and would have to sell above 12,818 units to begin to make a profit. \$70,000 \$75,000 \$80,000 \$90,000 Variations in Labor: \$1,322,300 \$1,327,300 \$1,332,300 \$1,342,300 \$12.00 \$82.00 16125.61 16186.59 16247.56 16369.51 \$13.00 \$81.00 16324.69 16386.42 16448.15 16571.60 \$14.00 \$80.00 16528.75 16591.25 16653.75 16778.75 \$15.00 \$79.00 16737.97 16801.27 16864.56 16991.14 \$16.00 \$78.00 16952.56 17016.67 17080.77 17208.97 \$17.00 \$77.00 17172.73 17237.66 17302.60 17432.47 Variations in Insurance: Contribution Margin with Unit Price = \$100.00 Total Fixed Costs: *** As The Variations for Labor and Insurance Increase, and cause the Contribution Margin to Decrease, and Fixed Costs to Increase, the Breakeven Points Increase, meaning that more units would need to be sold above the breakeven value to make a profit....
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bus340 - SCTC would have to sell 12,818 units to break even...

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