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Fueling Station Break Even Point

It would be interesting to see how gas stations and convenience store have the price of gasoline calculated into their break-even point. Explain

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Break even analysis is used by calculating the contribution margin (gross profit) of a product(s) and/or services and determining how many units must be sold at an average contribution margin per unit to cover total fixed costs. The difficulty in applying this process to a fueling station is that the price of fuel fluctuates as the commodities ...

Solution Summary

The solution explains the concept of break even analysis as it pertains to a gas station operation.