Question: A break - even analysis is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break

A break-even analysis is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point.

What to use: Excel File

Open Excel file: BreakEven-formula.xlsx
According to your business product, update both data tables. You can focus on the red italicized costs in the tables shown below. You must change all numbers.
In the results tables, the column 'Units Sold' can be replaced from 1, 2, 3, to 10, 20, 30 or 1000, 2000, 3000 or any other increasing scheme according to your unit price and possible break-even point
All the numbers MUST be different from the sample sheet.

What to write: Word Document

Create and name your own business (fictional business with made-up data sets)
Describe your business' mission statement: provide a one-sentence "formal summary of the aims and values of a company, organization, or individual."
Business operation description for break-even analysis
1. Describe your product
2. Discuss Fixed Costs (land, factory/plant, equipment, etc.)
3. Discuss Variable Costs (labor, materials/parts, power supply, water, etc.)
4. The sample excel file has all formulas embedded. Briefly discuss how formulas are used in the file.
Your decision-making guidelines
1. Which data table is suitable for your business?
2. Where is the break-even point the number of units sold?
3. When do you need to make the break-even point; 3 months, 6 months, 1 year? Explain why.
Data Tables copy and paste both tables: data table 1 and data table 2
Screenshots (alt + PrtScn, then paste it to your Word doc) of Excel Sheet with Charts

What to submit

Submit your (a) Word doc and (b) Excel file in Canvas:
1. ep4-steve-brown.docx
2. ep4-steve-brown.xlsx

**Data Table 1: Fixed Variable Costs, Changing Sell Prices**
Unit Sold	Fixed Costs	Variable Costs	Sell Price	Profit Contribution
1	$2,500.00	$300.00	$445.00	$145.00
1	$2,500.00	$300.00	$485.00	$185.00
1	$2,500.00	$300.00	$525.00	$225.00
1	$2,500.00	$300.00	$565.00	$265.00
1	$2,500.00	$300.00	$605.00	$305.00

**Data Table 2: Changing Variable Costs, Fixed Sell Prices**
Units Sold	Fixed Costs	Variable Costs	Sell Price	Profit Contribution
1	$2,500.00	$300.00	$445.00	$145.00
1	$2,500.00	$280.00	$445.00	$165.00
1	$2,500.00	$260.00	$445.00	$185.00
1	$2,500.00	$240.00	$445.00	$205.00
1	$2,500.00	$220.00	$445.00	$225.00

A break-even analysis is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis

Urite Sold 1 1 1 1 1 1 1 5 $ $ 3 5 Fixed Costs Variable Costs 2.500 00$ 300.00 $ 2.500.00 $ 280.00 $ 2.500.00 $ 260.00 $ 2.500.00 $ 240.00 $ 2.500.00 $ 220.00 S Sel Price Prolit Certribution 445.00 $ 145 00 445.00 $ 165.00 445.00 $ 186.00 445.003 205.00 445.00 5 225.00 $6,000.00 United 5 3 1 2 3 4 4 $5,000.00 $ $ 5 $ 5 5 6 7 $4,000.00 & 5 $ 10 $ $3,000.00 11 Varis Crab S00 Werdd Cw $ Ward Coxx $ poft Varised $240 V Coal 320 Fixed Cod Pro Centro 1 Proft Contuan2 Contributions Proft Contrition Print Cartrition 5 2,500.00 $ 145.00 5 165.00 $ 185.00 $ 205.00 $ 225.00 2,500.00 $ 2000$ 930005 370.00 $ 450.00 2,500.00 S 436.00 $ 496.00 $ 566.00 S 615.00 5 70.00 2,500.00 560.00 $ 650.00 5 820.00 S 900.00 250000 $ 72500 $ 825.00 $ 5.00 $ 1.125.00 $ 1.120.00 2,500.00 5 870.00 $ 990.00 $ 1,110,00 $ 1,290.00 S 1,380.00 2,50000 $ 10150 $ 1.155.00 $ 1.285.00 $ 105.00 $ 1,575 00 2,500.00 S 1,150.00 5 1.320.00 5 1,490.00 S 1,640.00 $ 1,500.00 2,500.00 $ 1,306.00 $ 141505 1,65.00 $ 1.815.00$ 2.000.00 2.500.00 S 1.450.00 $ 1.650.00 $ 1,500.00 5 2000.00 $ 2,200.00 2,500.00 1,506.00 $ 1815.00 5 2.05.00 5 2255.00 $ 2,475.00 2,500.00 $ 1.740.00 $ 196000 $ 222000$ 206000 $ 2.700.00 2,500.00 S 1,856.00 $ 2,145.00 5 2405.00 $ 2.665.00 5 S 2,995.00 2,500.00 $ 231000 $ 25000 $ 2870c0s 15000 2,500.00 S 2,176.00 5 2.476.00 $ 2175.00 3,075.00 $ 3,370.00 2,500.00 $ 2840.00 $ 270.00 $ 3.240.00 $ S600.00 2,500.00 $ 2.400.00 $ 2.906.00 $ 3,145.00 3495.00 $ 3,500.00 2,500.00 $ 2610.00 $ 2970.00 $ 3,390.00 $ 300.00 s $ 4,080.00 2,500.00 2.756.00 $ 3515,00 $ 3195.00 $ 1.275.00 2,500.00 $ 2,900.00 $ 3.300.00 5 3,700.00 $ 4 100.00 4,500.00 2,50000 $ 310450 $ / 9465.00 $ 4305.00 4,72500 2,500.00 5 3,190.00 $ 2.630.00 $ 4,070.00 451000 5 4,900.00 2,500.00 $ 3,956. $ 2,796.00 $ 4255.00 $ 4715.00 $ 5175.00 2,500.00 $ 2,450.00 $ 3.900.00 $ 4,440.00 $ 4520.00 $ 5,400.00 2,500.00 S 3,650 $ 4,125.00 $ 4625.00 5.125.00 5 5,605.00 Chart Area 12 $ 13 5 14 $ 165 10 3 17 $ 18 5 19 $ $2,000.00 $1,000.00 20 5 21 $ $ $ 2 $0.00 $ 1 2 5 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 $ 5 - Fbcd Cosis Variabb Costs 1200 Pront Contbufon 2 Variable costs Pricibution Variable Cos$300 Pro Contbuton 1 Valable Cos $200 Frot Contribution 3 -Variable Coxx $221 Prolit Contribution 5 Unit Sold 1 1 1 1 1 1 Fixed Costs Variable Costs 5 2.500.00 S 300.00 $ 2.500.00 $ 300.00 $ $ 2.500.00 $ $ 300.00 $ 5 2.500.00 S 300.00 $ 2,500.00 $ 300.00 $ Sell Price Profit Contribution 445.00 S S 145.00 485.00 $ 185.00 525.00 $ 225.00 565.00 $ S 285.00 605.00 $ 305.00 $9,000.00 Units Sold 1 $ $8.000.00 2 3 $ 5 4 $ $7.000.00 $ 5 G G $6,000.00 7 $ B $ 9 $ $5.000.00 13 $ 11 $ $4,000.00 12 Sal Pr 100 5443 Sol Price 400 Froll S485 Sdl Price 5625 Profit Sell Price 5805 Sall Pico SGOS Fbed Costs Prolt Contribution Contribuen? 1 2 Contribution 3 Prof. Contribution 4 Proft Donribusons 2,500.00 $ 145.00 185.00 $ $ 225.00 $ 295.00 $ 305.00 25000 $ 290.00 $ 370.00 $ 450.00 $ 530.00 $ 670.00 2,500.00 $ 235.00 G55.00 675.00 5 795.00 $ 915.00 2.5.000 $ 59000 $ 743005 900.00 $ 1.000 $ 1923.00 250000 $ 725.00 $ 925.00 $ 1.125.00 $ 1,325.00 $ 1.525.00 2,500.00 $ BRO.00 5 S 1,110.00 5 1250.00 $ 1,520,00 5 1,830,00 2,500 $ 1.045.00 S 1206005 157505 1.5.00 $ 213500 2.500.00 5 1,160.00 5 1,490.00 5 1.800.00 5 2120,00 2440.00 2,500.00 $ 1,305.00 $ 1.665.00 5 2.025.00 5 2385.00 $ 2745.00 2,5000 $ $ 1$ 22500$ 200 $ Sibaca 2.500.00 $ 1,095.00 S 2.635.00 2.475.00 5 2916.00 $ 3.395.00 2,500.00 $ 1,740.00 $ 2220.005 2,700.00 $ 3.190.00 $ 2000 2,5000 $ 5 183500 2.4.5.00 S 2825.00 $ 3615.00 $ 385.00 2,500.00 $ 2.000,00 5 2.690.00 3.160.00 $ 3,710.00 $ 4273,00 2,500.00 $ 2175.00 $ 2,775.00 5 2,975.00 5 3,975.00 $ 4575.00 25000 $ 296000 $ 2000 48000 2,500.00 5 2.465.00 5 3,145.00 5 293.00 $ 4505.00 $ G 185.00 2,500.00 $ 21000$ 9.990.005 4,050,00 4770.00 $ S2000 250000 $ 255.00 $ 3515.00 S 1275.00 $ 5.066.00 $ $ 5.795.00 2,500.00 5 2900.00 $ 3,700.00 4.600.00 $ 5,300.00 G 100.00 2,5000 $ 3.045.00 $ 9 85.05 4.725.00 $ 5.545.00 $ A405.00 250000 $ 3.190.00 $ 4.070.00 $ 4.850.00 $ 5.600.00 $ 671000 2,500.00 $ 3.395.00 $ 4255.00 5 6.175.00 $ 5,095.00 $ 7,015.00 2,500.00 $ 440005 54000 $ R$200 $ 7320.00 2.500.00 $ 3.625.00 $ 4.625.00 $ 5.625.00 $ GOS 7.625.00 13 $ 1 $3.000.00 15 $ 18 $2.000.00 $ 17 16 19 20 21 $1.000.00 s $ 5 $ $ $ $- 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 24 $ 25 and Coats -SWIPE 5115 Pin $ BP. $ PwContratan Pallar Bal Price $145 Pobten! Sal Price $575 $928 Pratt Contra - Pik SC Mi Cumbales Urite Sold 1 1 1 1 1 1 1 5 $ $ 3 5 Fixed Costs Variable Costs 2.500 00$ 300.00 $ 2.500.00 $ 280.00 $ 2.500.00 $ 260.00 $ 2.500.00 $ 240.00 $ 2.500.00 $ 220.00 S Sel Price Prolit Certribution 445.00 $ 145 00 445.00 $ 165.00 445.00 $ 186.00 445.003 205.00 445.00 5 225.00 $6,000.00 United 5 3 1 2 3 4 4 $5,000.00 $ $ 5 $ 5 5 6 7 $4,000.00 & 5 $ 10 $ $3,000.00 11 Varis Crab S00 Werdd Cw $ Ward Coxx $ poft Varised $240 V Coal 320 Fixed Cod Pro Centro 1 Proft Contuan2 Contributions Proft Contrition Print Cartrition 5 2,500.00 $ 145.00 5 165.00 $ 185.00 $ 205.00 $ 225.00 2,500.00 $ 2000$ 930005 370.00 $ 450.00 2,500.00 S 436.00 $ 496.00 $ 566.00 S 615.00 5 70.00 2,500.00 560.00 $ 650.00 5 820.00 S 900.00 250000 $ 72500 $ 825.00 $ 5.00 $ 1.125.00 $ 1.120.00 2,500.00 5 870.00 $ 990.00 $ 1,110,00 $ 1,290.00 S 1,380.00 2,50000 $ 10150 $ 1.155.00 $ 1.285.00 $ 105.00 $ 1,575 00 2,500.00 S 1,150.00 5 1.320.00 5 1,490.00 S 1,640.00 $ 1,500.00 2,500.00 $ 1,306.00 $ 141505 1,65.00 $ 1.815.00$ 2.000.00 2.500.00 S 1.450.00 $ 1.650.00 $ 1,500.00 5 2000.00 $ 2,200.00 2,500.00 1,506.00 $ 1815.00 5 2.05.00 5 2255.00 $ 2,475.00 2,500.00 $ 1.740.00 $ 196000 $ 222000$ 206000 $ 2.700.00 2,500.00 S 1,856.00 $ 2,145.00 5 2405.00 $ 2.665.00 5 S 2,995.00 2,500.00 $ 231000 $ 25000 $ 2870c0s 15000 2,500.00 S 2,176.00 5 2.476.00 $ 2175.00 3,075.00 $ 3,370.00 2,500.00 $ 2840.00 $ 270.00 $ 3.240.00 $ S600.00 2,500.00 $ 2.400.00 $ 2.906.00 $ 3,145.00 3495.00 $ 3,500.00 2,500.00 $ 2610.00 $ 2970.00 $ 3,390.00 $ 300.00 s $ 4,080.00 2,500.00 2.756.00 $ 3515,00 $ 3195.00 $ 1.275.00 2,500.00 $ 2,900.00 $ 3.300.00 5 3,700.00 $ 4 100.00 4,500.00 2,50000 $ 310450 $ / 9465.00 $ 4305.00 4,72500 2,500.00 5 3,190.00 $ 2.630.00 $ 4,070.00 451000 5 4,900.00 2,500.00 $ 3,956. $ 2,796.00 $ 4255.00 $ 4715.00 $ 5175.00 2,500.00 $ 2,450.00 $ 3.900.00 $ 4,440.00 $ 4520.00 $ 5,400.00 2,500.00 S 3,650 $ 4,125.00 $ 4625.00 5.125.00 5 5,605.00 Chart Area 12 $ 13 5 14 $ 165 10 3 17 $ 18 5 19 $ $2,000.00 $1,000.00 20 5 21 $ $ $ 2 $0.00 $ 1 2 5 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 $ 5 - Fbcd Cosis Variabb Costs 1200 Pront Contbufon 2 Variable costs Pricibution Variable Cos$300 Pro Contbuton 1 Valable Cos $200 Frot Contribution 3 -Variable Coxx $221 Prolit Contribution 5 Unit Sold 1 1 1 1 1 1 Fixed Costs Variable Costs 5 2.500.00 S 300.00 $ 2.500.00 $ 300.00 $ $ 2.500.00 $ $ 300.00 $ 5 2.500.00 S 300.00 $ 2,500.00 $ 300.00 $ Sell Price Profit Contribution 445.00 S S 145.00 485.00 $ 185.00 525.00 $ 225.00 565.00 $ S 285.00 605.00 $ 305.00 $9,000.00 Units Sold 1 $ $8.000.00 2 3 $ 5 4 $ $7.000.00 $ 5 G G $6,000.00 7 $ B $ 9 $ $5.000.00 13 $ 11 $ $4,000.00 12 Sal Pr 100 5443 Sol Price 400 Froll S485 Sdl Price 5625 Profit Sell Price 5805 Sall Pico SGOS Fbed Costs Prolt Contribution Contribuen? 1 2 Contribution 3 Prof. Contribution 4 Proft Donribusons 2,500.00 $ 145.00 185.00 $ $ 225.00 $ 295.00 $ 305.00 25000 $ 290.00 $ 370.00 $ 450.00 $ 530.00 $ 670.00 2,500.00 $ 235.00 G55.00 675.00 5 795.00 $ 915.00 2.5.000 $ 59000 $ 743005 900.00 $ 1.000 $ 1923.00 250000 $ 725.00 $ 925.00 $ 1.125.00 $ 1,325.00 $ 1.525.00 2,500.00 $ BRO.00 5 S 1,110.00 5 1250.00 $ 1,520,00 5 1,830,00 2,500 $ 1.045.00 S 1206005 157505 1.5.00 $ 213500 2.500.00 5 1,160.00 5 1,490.00 5 1.800.00 5 2120,00 2440.00 2,500.00 $ 1,305.00 $ 1.665.00 5 2.025.00 5 2385.00 $ 2745.00 2,5000 $ $ 1$ 22500$ 200 $ Sibaca 2.500.00 $ 1,095.00 S 2.635.00 2.475.00 5 2916.00 $ 3.395.00 2,500.00 $ 1,740.00 $ 2220.005 2,700.00 $ 3.190.00 $ 2000 2,5000 $ 5 183500 2.4.5.00 S 2825.00 $ 3615.00 $ 385.00 2,500.00 $ 2.000,00 5 2.690.00 3.160.00 $ 3,710.00 $ 4273,00 2,500.00 $ 2175.00 $ 2,775.00 5 2,975.00 5 3,975.00 $ 4575.00 25000 $ 296000 $ 2000 48000 2,500.00 5 2.465.00 5 3,145.00 5 293.00 $ 4505.00 $ G 185.00 2,500.00 $ 21000$ 9.990.005 4,050,00 4770.00 $ S2000 250000 $ 255.00 $ 3515.00 S 1275.00 $ 5.066.00 $ $ 5.795.00 2,500.00 5 2900.00 $ 3,700.00 4.600.00 $ 5,300.00 G 100.00 2,5000 $ 3.045.00 $ 9 85.05 4.725.00 $ 5.545.00 $ A405.00 250000 $ 3.190.00 $ 4.070.00 $ 4.850.00 $ 5.600.00 $ 671000 2,500.00 $ 3.395.00 $ 4255.00 5 6.175.00 $ 5,095.00 $ 7,015.00 2,500.00 $ 440005 54000 $ R$200 $ 7320.00 2.500.00 $ 3.625.00 $ 4.625.00 $ 5.625.00 $ GOS 7.625.00 13 $ 1 $3.000.00 15 $ 18 $2.000.00 $ 17 16 19 20 21 $1.000.00 s $ 5 $ $ $ $- 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 24 $ 25 and Coats -SWIPE 5115 Pin $ BP. $ PwContratan Pallar Bal Price $145 Pobten! Sal Price $575 $928 Pratt Contra - Pik SC Mi Cumbales

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