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28 Sep 2019
Using the Break-Even Formula, determine the breakeven point in units for the following fascinating business scenario!!
You run a donut factory. Each year it costs you $110,000 for facility rental, $45,000 for administrative assistance, $230,000 for your exorbitant salary, and $2,500 to be a Chamber of Commerce member.
For each donut you produce, you spend $0.35 for flour, $0.05 for sugar, $0.30 for labor, and $0.05 for packaging. You sell each donut for $1.25 each.
A. What is your breakeven unit point for donuts?
B. Assuming you run 365 days a year, and you produce 5000 donuts per day, on what day of the year do you achieve that golden moment where you can say, everything from there on out is pure profit?
Using the Break-Even Formula, determine the breakeven point in units for the following fascinating business scenario!!
You run a donut factory. Each year it costs you $110,000 for facility rental, $45,000 for administrative assistance, $230,000 for your exorbitant salary, and $2,500 to be a Chamber of Commerce member.
For each donut you produce, you spend $0.35 for flour, $0.05 for sugar, $0.30 for labor, and $0.05 for packaging. You sell each donut for $1.25 each.
A. What is your breakeven unit point for donuts?
B. Assuming you run 365 days a year, and you produce 5000 donuts per day, on what day of the year do you achieve that golden moment where you can say, everything from there on out is pure profit?
Divya SinghLv10
28 Sep 2019
