You are considering opening a stand at a weekend fair. The information about your project is as follows:

• Number of widgets that he expects to sell (10,000)
• Variable costs ($40,000)
• Fixed costs ($9,000)
• Unit selling price ($5.00).

 

With this information, Calculate

(1) The contribution margin,

(2) The profit,

(3) The break-even point in units,

(4) The break-even point in revenue.

Use the numbers in the task to Calculate:

(5) The cash break-even point in units and in revenue.Assume that fixed costs include $2,000 for depreciation.