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    Applying breakeven analysis to Best Buy - variable & fixed costs

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    I need assistance in identifying any activity in the attached financial statements Report on Best Buy Co., Inc where I can apply breakeven analysis. I also need help in defining:
    ? A unit of measurement for the activity
    ? Revenue per unit for the activity
    ? Variable costs for the activity
    ? Fixed costs for the period in the activity
    If you cannot identify specific actual amounts, can you make a reasonable estimate and apply the tool as if the data were factual.
    The report should include
    ? The name and nature of the organization
    ? The activity and time period you used
    ? The inputs you used
    ? Your results
    ? Any implications from your results

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    Solution Preview

    Best Buy Co., Inc. operates as a specialty retailer of consumer electronics, home-office products, entertainment software, appliances, and related services. It's a fortune 100 company having sales of more than $30 bn in 2006. It operates retail stores and commercial Web sites under the brand names Best Buy, Future Shop, Magnolia Audio Video, and Geek Squad. As of November 30, 2006, the company operated approximately 1,100 retail stores in the United States, Canada, and the People's Republic of China.
    (Yahoo finance)

    Best Buy was named "Company of the Year" by Forbes magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine, and made Fortune Magazine's List of Most Admired Companies in 2006.

    Break even point is the point at which gains equal losses.
    Break-even analysis is basically an analytical technique for studying the relations ...

    Solution Summary

    This will explains the breakeven analysis