Break-Even Analysis Answers

Sodresh Sundials manufactures large stone sundials. It costs $14.22 to produce a sundial, which can then be sold for $36.75. The following table shows Sodresh Sundials’s non-production overhead costs and sundials sold over a period of one year.MonthOverhead ($)SoldJan.9,176290Feb.7,510329Mar.7,952309Apr.7,071288May8,942303Jun.9,249329Jul.7,813400Aug.6,821350Sep.9,382382Oct.8,117329Nov.9,018425Dec.6,503424In how many months did Sodresh Sundials either break even or turn a profit?

Dernea Gardening sells wheelbarrows. A wheelbarrow costs $6.94 to produce and it sells for $42.50. The company employs two salespeople, each of whom earns a different commission per wheelbarrow sold, as shown in the table below. The company's expenses last month, not counting production costs or commissions, totaled $524.24. How much profit did Dernea Gardening make from the sales of wheelbarrows last month?

Kevin works for a company which produces printers. A printer sells for $163.95 and costs $48.28 to produce. In one month, Kevin’s company sold 427 printers, earning a profit of 22,599.09. How great were the company’s non-production overhead expenses, to the nearest dollar?

Penny bought a juice squeezer for $10. She can make a bottle of orange juice for a cost of $0.75, and she sells her orange juice for $1.85 per bottle. Which of the following graphs best illustrates Penny’s situation? I. II. III. IV.

Radwyn Horticulture is a company which focuses upon selling saplings. The company can grow a sapling for $15.45, and can sell that sapling for $36.50. There are three main salespeople at Radwyn Horticulture, each of whom earns a different commission per sapling sold, as shown in the table below. Salesperson Commission/Sale Lara $8.15 Ian $11.25 Ari $8.90 Radwyn Horticulture’s fixed overhead expenses last month came to $7,699.45. It is known that one salesperson sold 191 saplings, one salesperson sold 245 saplings, and one salesperson sold 221 saplings. Which arrangement of sales would cause Radwyn Horticulture to break even?

Gabrielle and her business partners are starting a new business that sells organic shampoo. After analyzing the market they have a projected sales forecast showing that they must sell 50,000 bottles of shampoo in 12 months to break-even. Calculating the variable unit cost and projected unit price gives a break-even volume of 45,000 bottles. Why should the projected unit price be changed based on the break-even volume?

Faye, George, and Hannah are salespeople working at Lasht Cellular. It costs Lasht Cellular $21.49 per phone to stock a certain brand of phone, which they sell for $68.75. The three salespeople earn differing amounts of commission per phone sold, based on their seniority. The following table shows their respective sales in the past month. Salesperson Phones Sold Commission/Phone Faye 214 $10.25 George 176 $8.90 Hannah 251 $9.65 If Lasht Cellular had fixed overhead costs of $14,350 last month, how much profit did it gain last month?

A furniture manufacturer must pay $16.91 to make a certain kind of chair, which it can sell for $55.75. If the manufacturer has starting overhead costs of $18,340, not including production costs, how many chairs must it sell to realize a profit of $24,850, to the nearest chair?

Sodresh Sundials manufactures large stone sundials. It costs $14.22 to produce a sundial, which can then be sold for $36.75. The following table shows Sodresh Sundials’s non-production overhead costs and sundials sold over a period of one year.MonthOverhead ($)SoldJan.9,176290Feb.7,510329Mar.7,952309Apr.7,071288May8,942303Jun.9,249329Jul.7,813400Aug.6,821350Sep.9,382382Oct.8,117329Nov.9,018425Dec.6,503424In how many months did Sodresh Sundials either break even or turn a profit?

Which of the following is not a recommendation the author of the Businesstown.com article makes to lower your break-even point?

Gabrielle and her business partners are starting a new business that sells organic shampoo. After analyzing the market they have a projected sales forecast showing that they must sell 50,000 bottles of shampoo in 12 months to break-even. Calculating the variable unit cost and projected unit price gives a break-even volume of 45,000 bottles. Why should the projected unit price be changed based on the break-even volume?

Radwyn Horticulture is a company which focuses upon selling saplings. The company can grow a sapling for $15.45, and can sell that sapling for $36.50. There are three main salespeople at Radwyn Horticulture, each of whom earns a different commission per sapling sold, as shown in the table below. Salesperson Commission/Sale Lara $8.15 Ian $11.25 Ari $8.90 Radwyn Horticulture’s fixed overhead expenses last month came to $7,699.45. It is known that one salesperson sold 191 saplings, one salesperson sold 245 saplings, and one salesperson sold 221 saplings. Which arrangement of sales would cause Radwyn Horticulture to break even?

It costs a publishing company $0.55 to print one copy of a certain novel. This company paid $725,000 for the rights to the novel. If they can sell a copy of the novel for $6.75, how many copies of the novel must they sell to break even, to the nearest hundred?

Penny bought a juice squeezer for $10. She can make a bottle of orange juice for a cost of $0.75, and she sells her orange juice for $1.85 per bottle. Which of the following graphs best illustrates Penny’s situation? I. II. III. IV.

Dernea Gardening sells wheelbarrows. A wheelbarrow costs $6.94 to produce and it sells for $42.50. The company employs two salespeople, each of whom earns a different commission per wheelbarrow sold, as shown in the table below. The company's expenses last month, not counting production costs or commissions, totaled $524.24. How much profit did Dernea Gardening make from the sales of wheelbarrows last month?

The following graph displays the cost and revenue functions for Jake’s homemade wicker baskets. How many baskets must Jake sell to break even?