I would like for the same person to answer the 4 questions at the bottom. It would be greatly appreciated. Thank you

Breakeven Calculations Another important part of opening a business and a vital part of your business plan is a breakeven analysis. In this activity you will be determining how much product you have to sell to equal your cost. Any product sold above this number is profit!! A Short Lesson on Breakeven Many entrepreneurs make the mistake of bringing a product or service to the market without fully understanding the total costs involved and the prices they can charge. As a result, they discover they can't sell enough of the product or service to make a profit. One of the most important tools you can use to make better business decisions is the break-even analysis; it enables you to determine with great accuracy whether or not your idea is a profitable one. Best of all, you can use this tool to evaluate every product or service you offer. A break-even analysis is a simple way to determine how much of the product must be sold to generate a specific level of profitability. Keep the following in mind: * Each business has certain fixed costs that must be paid every month, whether or not any sales take place. * Each product or service has variable costs that are incurred when the product is produced and sold. * There are semi-variable costs that go up or down depending on the level of business activity.

After all costs attributable to bringing that product to market are deducted, each product or service yields a certain amount of profit. This profit contribution can then be divided into the "fixed costs" to determine how many units must be sold to break even.

Here's a simple example of the break-even model:

The total costs of operating the business each month are $10,000. Each product the company produces can be sold for $1,000. Each product costs an average of $800 per unit to produce, sell and deliver. The profit contribution per unit is therefore $200 each ($1,000 - $800). The amount profit contribution per unit is divided into total costs to determine the break-even point. So, $10,000 divided by $200 equals 50 units. The company must therefore sell 50 units per month to break even, or approximately two units per business day. Only after the company has sold 50 units in one month does it begin to earn a profit of $200 per unit.

A Day At The Flea Market Assignment One Saturday, while Hannah was visiting her cousins in Harleyville, she tells her Uncle Charley about her plans to one open her own business. Uncle Charley listens, and then responds with a surprising offer. Charley owns a small knitting mill that manufactures athletic socks. He offers to sell her packages of the socks for a wholesale price of $2.40 per package of six. He even offers to give her the socks in advance, and she doesnt have to pay him until they are sold. He agrees to take back any socks she doesnt sell.

The next day, Hannah asks Ms. Kodiak what she needs to do in order to sell socks legally at the flea market. Ms. Kodiak suggests she call the local SmallBusinessAssistanceCenter. Mr. Thompson, the SBAC Director, tells her the first thing she needs to do is purchase a sales and use tax license for $10. She also must collect sales tax on the socks she sells and send it to the State Department of Revenue.

During class the next day, Hannah asks Ms. Kodiak if the class can help her determine how many packages of socks she will need to sell to make money. The first thing Ms. Kodiak asks the class to do is to divide Hannahs cost between costs that dont vary with sales (fixed or overhead costs) and costs that do vary with sales (variable costs or costs of goods sold).

Ms. Kodiak tells Hannah that to determine how many packages of socks she need to sell before she makes money, she should divide her overhead costs by the dollar amount each package contributes to profit. This will tell her how many packages she must sell to cover her fixed costs.

Overhead Costs

_______________________________=Breakeven Point in Packages Sold

Dollar Amount Contributed per Package

Questions:

• How much money will Hannah make if she sells the breakeven number of packages?
• Ms. Kodiak asks Hannah how much she would like to make from her day at the flea market. Hannah says that she wants to make at least $8 an hour. The flea market is open from 8 am until 4 pm, or 8 hours total. Hannah quickly calculates that she would like to make $64. How many packages would Hannah have to sell to make $64?
• How many packages of socks should Hannah take to the flea market?
• How does sales tax offset Hannahs breakeven?

A Day At The Flea Market Assignment One Saturday, while Hannah was visiting her cousins in Harleyville, she tells her Uncle Charley about her plans to one open her own business. Uncle Charley listens, and then responds with a surprising offer. Charley owns a small knitting mill that manufactures athletic socks. He offers to sell her packages of the socks for a wholesale price of $2.40 per package of six. He even offers to give her the socks in advance, and she doesnt have to pay him until they are sold. He agrees to take back any socks she doesnt sell.

The next day, Hannah asks Ms. Kodiak what she needs to do in order to sell socks legally at the flea market. Ms. Kodiak suggests she call the local SmallBusinessAssistanceCenter. Mr. Thompson, the SBAC Director, tells her the first thing she needs to do is purchase a sales and use tax license for $10. She also must collect sales tax on the socks she sells and send it to the State Department of Revenue.

During class the next day, Hannah asks Ms. Kodiak if the class can help her determine how many packages of socks she will need to sell to make money. The first thing Ms. Kodiak asks the class to do is to divide Hannahs cost between costs that dont vary with sales (fixed or overhead costs) and costs that do vary with sales (variable costs or costs of goods sold).

Ms. Kodiak tells Hannah that to determine how many packages of socks she need to sell before she makes money, she should divide her overhead costs by the dollar amount each package contributes to profit. This will tell her how many packages she must sell to cover her fixed costs.