Question

I have a given numbers

Revenue: 150,000

price: 300

numbers of services provided 1500 to 500 people.

Fixed cost : 18122

variable cost: 15,000

I want the profit margin and the break-even point, in this case, if the break-even not available which should I change in these numbers to make it in break-even situation because this question is from me . PLEASE i want it in break-even situation in excel sheet

Answer 1

Sol. The given variable figures in question are for services to 500 people (As Revenue / Price = 500, hence):

	Particulars	Per Service Cost/Revenue	500 People	1500 People
	Revenue	300 (given)	150,000	450,000
Less:	Variable Cost	=15000/500 = 30	15000	45000
	Contribution		135,000	405,000
Less:	Fixed Cost	Given	18122	18122
	Profit		116878	386878

Break Even Point is a point at which contribution = Fixed Cost so,

For Contribution = $18122, as Contribution per person service = 300 - 30 = 270

So, Break even point will be = Fixed Cost / Contribution per unit = 18122 / 270 = 67.11 Person or 68 Person.

We should change no. of services to 68 people so as to find break even point