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20Trend Setters Hair Studio — Sample Plan
6.1 Break-even Analysis
The break-even analysis shows that Trend Setters has a good balance of fixed costs and
sufficient sales strength to remain healthy. Our break-even point is only 126 clients a month.
This was derived by using an average revenue of $45 per client, and fixed costs of $5,691.
Products sales were not included in this figure, but it does include an owner withdrawal of
$2,000 a month.
Break-even Analysis
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
$0
$2,000
$4,000
$5,000
$7,000
$9,000
Monthly break-even point
Break-even point = where line intersects with 0
Table: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
126
Monthly Revenue Break-even
$5,691
Assumptions:
Average Per-Unit Revenue
$45.00
Average Per-Unit Variable Cost
$0.00
Estimated Monthly Fixed Cost
$5,691
Pg 7
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