Calculating Break Even Point
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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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Calculating break-even problem.
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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 ...
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