Accounting: Break Even Analysis

Break Even Analysis
Name:
Course
Instructor
Date:
Details
Anticipated sales price per unit

$75

Variable cost per unit*

$45

Anticipated sales volume in units

$800,000

Production costs

$9,000,000

Anticipated advertising costs

$15,000,000

*The video game, packaging, and copying costs.

 Details

Present Situation

Dan's Strategy

Haley's Strategy

Selling price per unit

$75

$60

$75

Variable expenses per unit

$45

$45

$45

Contribution Margin

$30

$15

$30

Unit Sales

800,000

2,000,000

1,200,000

Contribution

$24,000,000

$30,000,000

$36,000,000

Less

 

 

 

Production costs

9,000,000

9,000,000

9,000,000

...