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Nichols Exam Review Break Even Analysis Gregory’s Games Each game sells for $35 Each game costs $21 to produce Monthly fixed expenses equal $ 7000 for office rental, DSL connection and cleaning service. What is the contribution margin percentage? How many games does Gregory need to make to break even? What is his break even point in sales dollars? If he increased his selling price to $38.50 per unit, what would his new break even in units sold be? sales dollars? Gregory is currently now just breaking even, if he uses better technology with his electronic game it
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Unformatted text preview: will increase the per unit cost from $ 21 to $ 25. He expects this will also boost his sales 10%. Will this be a wise investment? ( use original price figures) At what sales volume will he break even again? Gregory wants to make a quick $ 1500 to pay for a trip during spring break. How many games (units) does he have to sell to do this? (assume original pricing) Fall 2008...
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