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Markup
Variable cost
1-markup(as a percentage)
What we pay for each unit we sell(dollar amount)
Fixed costs
1000
66
$1,066.00
75
10
margin
65
Break Even
$16.40
If the service has 50 clients that it does bookkeepping for each month, how much will they earn in 1 y
In Store DVD/CD Shop
Annual Fixed Costs
Rent
payroll
utilities
insurance
24000
16640
6000
2000
Total
48640
Average cost/cd/dvd
40%
Margin
60%
Break Even
81066.66666667
81067
If sales are $120000 per year how much will they earned?
0
200
0
0
200
Average cost/cd/dvd
40%
Margin
60%
Break Even
333.3333333333
If sales are $120000 per year how much will they earned?
Restaurant
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
71360
119800
It is much more profitable to work out of the home and avoid the fix
2000
4000
700
300
300
Total
7300
243.33
0.75
324.44
If they decide they need to be more competitive and change the margin to .65, what will the break ev
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
Total
2000
4000
700
300
300
7300
243.33
0.65
374.36
If they purchase new equipment that will allow them to provide better service
and must pay an extra $100/month for it what will the new B.E. be?
Fixed costs monthly
Rent
Payroll
Utilities
Insurance
Equipment Loans
Total
2000
4000
700
300
400
7400
246.67
0.65
379.49
Comment on the net result these two moves have had on the business.
Plumber
Fixed costs Yearly
Truck
Equipment Loans
Desired annual sala
Gas
10000
2400
50000
2500
64900
Total
Weekly Fixed costs
Margin
1245.68
0.5
2491.36
If the plumber lands a job for a $10000 bathroom, how many weeks can he go without landing anothe
If the plumber is able to land the following jobs:
Bathrooms
Total
80000
30000
15000
50000
48000
40000
263000
Kitchens
8
4
3
5
6
2
10000
7500
5000
10000
8000
20000
alysis Assignment
example
Sandwich
Sandwich
cost
selling Price
0.95
$3.25
2184
Margin
$2.30
Fixed Cost
Rent/Day
$
10.00
$
10.00
Markup
0.707692
B/E
4.3
$ 14.13
e home and avoid the fixed costs to keep the store ope because I would make 119800 vs 71360
374.36
total profit
10000/2491.36= 4.01
0 vs 71360