Case Study: Paul’s Breakeven Costs
Paul the sportswear entrepreneur is having trouble determining the unit volume needed to reach breakeven - both as a breakeven without a desire for profit and the other with a desire for profit.
This is Paul’s situation:
- Total Fixed costs for his business for 3 months are $9,110
- Variable cost per unit is $30
- Sales price per unit is $60
- Desired profit is $10,000.
Activity Using the calculator from CalcXML, calculate Paul’s anticipated sales required to reach breakeven without the desired profit.
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