In: Operations Management
Here is a break-even analysis model.
| 
 Break-even Analysis  | 
|
| 
 Revenue  | 
|
| 
 Selling Price per unit  | 
 $20  | 
| 
 Costs  | 
|
| 
 Fixed Costs per unit  | 
 $210,000  | 
| 
 Variable Cost per unit  | 
 $8  | 
| 
 Break-even Point  | 
|
| 
 Quantity (Q)  | 
 17,500.00  | 
Do the following two tasks.
| 
 a.  | 
 Create a strategy table showing how the quantity changes as the selling price varies from $18 to $22.  | 
|
| 
 b.  | 
 Create a strategy table showing how the quantity changes as the selling price varies from $18 to $22 and the variable cost per unit changes from $6 to $10.  | 
Recall that the Break-even point is when Profit equal zero, or Revenue minus Total Cost equals zero.
Here is the Break-even formula: