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Unformatted text preview: Sales v a r iable expenses f i xed expenses = net income For our breakeven analysis net income would equal 0 and we could solve for N, or the number of units. The furniture equation breakeven point would be as follows 1344.05N 367.25N 1202080= 0 967.80N 1202080= 0 967.80N= 1202080 N= 1230.63 units at the ratio of 13% highend and 87% midgrade furniture production. This would come out to 161.5 pieces of highend furniture and 1069 pieces of the midgrade furniture needing to be produced for Guillermo to hit the breakeven point. Since his actual sales were high above this mark Guillermo Furniture Store is still, clearly profitable. If Guillermo is looking for a breakeven point for his Flame retardant he would need to reduce his costs because his current cost is equal to the market price per liter and he would not make any profit regardless of the quantity of sales....
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 Spring '10
 DAVID
 Revenue

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