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Calculating Break Even Point

Trying to calculate the accounting break-even and the cash break-even ponits. Have to ignore any tax effects in calculating the Cash Break-Even.

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Kindly see the attached file for calculations:

Unit Price Unit Variable Cost Fixed Costs Depreciation
$3000 $2275 $14,000,000 $6,500,000
39 27 73,000 150,000
10 4 1,200 840

Cash BREAK EVEN POINT ( Sales IN UNITS)= Cash FIXED COSTS /CONTRIBUTION PER UNIT
As the Fixed costs just include cash fixed costs and excludes ...

Solution Summary

Calculating break-even problem.

$2.19