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Breakeven point

Breakeven point

Q Enroll in the Basics of Finance course at HPLife. The link will work best with Chrome or FireFox. Complete the course and copy the calculation of your break-even point as proof of having completed the exercise. If the link does not work, then search “HP Life E-Learning” and follow the link to “Courses” and then “Basics of Finance.” You will need Excel to complete this exercise and you must enroll with a valid email address.

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Break-Even Point Calculations Without startup costs With startup costs How much will I charge per unit? Over how many months will I spread out my startup cost payments? Selling price (per unit) 12.00 Startup costs 3300.00 Minus variable costs (cost per unit) - 7.00 Number of months to repay the startup costs ÷ 12 Contribution margin (profit per unit not considering fixed costs) 5.00 Startup costs (monthly) 275.00 Units to sell each month to cover monthly fixed costs Units to sell each month to cover monthly fixed costs with startup costs included Fixed costs (monthly) 2500.00 Startup costs (monthly) + 275.00 Fixed costs (monthly) 2500.00 Fixed and startup costs (monthly) 2775.00 Divided by contribution margin ÷ 5.00 Divided by contribution margin ÷ 5.00 Break-even point (monthly) 500.00 units Break-even point including startup costs (monthly) 555.00 You must sell at least 500.00 units each month in order to break even, including monthly fixed costs. You must sell at least 555.00 units each month in order to break even, including monthly fixed and startup costs.