Question

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:

Answer 1