Break-Even.xlsx - TOOL FOR DESIGNING PRICE-PROFIT SCENARIOS VENTA DE UNIDADES EXPLORER Units sold(baseline Price unit(baseline Total revenue(baseline

# Break-Even.xlsx - TOOL FOR DESIGNING PRICE-PROFIT SCENARIOS...

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TOOL FOR DESIGNING PRICE-PROFIT SCENARIOS - VENTA DE UNIDA Reducción Units sold (baseline) 50,000 Base Price / unit (baseline) \$ 20.00 Total revenue (baseline) \$ 1,000,000.00 \$ 1,000,000 New proposed price \$ 17.00 % Price Change -15% Variable cost/unit (baseline) \$ 12.00 -\$ 600,000 Variable cost/unit (new) \$ 12.00 \$ 400,000 (after the price changed) \$ - \$ Contribution/unit (baseline) \$ 8.00 \$ 400,000 % Contribution (baseline) 40% \$ Contribution/unit (new) \$ 5.00 \$ 400,000 % Contribution (new) 29% -\$ 20,000 Break-even sales change 60.0% \$ 380,000 (without incremental fixed costs) Break-even sales change (in units) \$ 30,000.00 \$ 1,050,000.00 Break-even sales level (in units) 80,000 - 630,000 Break-even sales level (in \$) \$ 1,360,000.00 420,000 % Change in total revenue 36.0% -\$ 20,000.00 WITH INCREMENTAL FIXED COSTS \$ 400,000.00 Unit break-even sales change 34,000 (assuming an increase of 1,000 units in capacity) % break-even sales change 68.0% (assuming an increase of 1,000 units in capacity) WITH INCREMENTAL COSTS BUT KEEPING PRICE AT \$20 Unit break-even sales change 2,500 (assuming that price remains constant at \$20) % break-even sales change 5.00% (assuming an increase of 2,000 units in capacity) Incremental fixed cost \$ 20,000.00

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ADES EXPLORER Escenario (a) Escenario (b) \$ 1,428,000 \$ 1,050,000 -\$ 1,008,000 -\$ 630,000 \$ 420,000 \$ 420,000 -\$ 20,000 -\$
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