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    Calculating Break Even of the Workshops

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    Training Revenue (200 x 20 x $300) $1,200,000
    Less Expenses:
    Trainer costs (200 x 2 x $1500) 600,000
    Manager's Salary 120,000
    Training officer 90,000
    Administrative staff 80,000
    Utilities/phone costs 20,000
    Manuals for participants 120,000
    Advertising costs 125,000
    Postage & other miscellaneous costs 9,450
    Total expenses $ 1,164,450

    Income from operations $35,550
    Common Allocated costs (10% of revenue) 120,000
    Net Income or (loss) $(84,450)

    I need assistance - Given that allocated costs at 10% of revenue, how do you calculate the number of workshops that must be offered to break-even - step by step and also, what if was $1000 per workshop, how do i calculate break even? Thanks

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    Solution Summary

    This solution shows step-by-step calculations to determine the break even costs of the workshops using revenues, variable cost, income and allocated costs.