Break-even Analysis Worksheet
Explain the difference between fixed and variable costs and list 2 examples of
Why is it valuable to keep fixed costs low in a startup company?
Give the equation for the break-even point in units and explain why it is useful.
Find the break-even point using the information below:
Company ‘A’ produces bicycles and sells them for HT 10 each. They
have paid 170 in rent. Administrative expenses are 350, equipment
maintenance expense is 190, and Utilities Expense is 70. Variable Costs
are equal to 22% of the sales price. How many units does Company ‘A’
need to sell to turn a profit?
Write an explanation of gross profit margins.
Give the definitions for debt and liquidity ratios and explain their importance.