Information Systems Analyst & Design

6. BreakEven Point Analysis (BEP): Using the BEP formula, BEP Fixed cost per unit / (Price per unit- Variable cost per unit) determine at what point will McDonald's or Wendy's break even. At how many units would either company break even? Both companies would need to sell beyond this particular point to start making a profit. Dollars Fixed Cost Price per Unit McDonald's Wendy's 30000 100 40 50000 90 Variable Cost per Unit Payback Period: Suppose BSU is analyzing a project which requires investment of $2,00,000 and it is expected to generate cash flows as follows: 7. Annual Cash Inflows 80000 60000 60000 20000 Year 4 In what year would BSU's initial investment get paid back? Show your calculations and results in a graph