# Break Even Analysis

374 WordsFeb 2, 20142 Pages
6a. Cost \$150,000,000.00 Life \$25.00 Straight-Line Depreciation \$6,000,000.00 Total Cost=Fixed Cost + Variable Cost (volume) Fixed Cost \$4,000,000.00 \$10,000,000.00 Variable Cost (volume) \$1.25(10,000,000) 12,500,000 Total Cost \$22,500,000.00 Revenue=P (volume) Price Per Unit \$3.25 Volume 10,000,000 Revenue \$32,500,000.00 Revenue \$32,500,000.00 Total Cost \$22,500,000.00 Annual Profits \$10,000,000.00 6b. Cost \$150,000,000.00 Life \$25.00 Straight-Line Depreciation \$6,000,000.00 Total Cost=Fixed Cost + Variable Cost (volume) Fixed Cost \$4,000,000.00 \$10,000,000.00 Variable Cost (volume) 1.25(2500000) 3,125,000 Total Cost \$13,125,000.00 Revenue=P (volume) Price Per Unit \$3.25 Volume 2,500,000 Revenue \$8,125,000.00 Revenue \$8,125,000.00 Total Cost \$13,125,000.00 Annual Profits \$(5,000,000.00) 6c. Cost \$150,000,000.00 Life \$25.00 Straight-Line Depreciation \$6,000,000.00 Total Cost=Fixed Cost + Variable Cost (volume) Fixed Cost \$4,000,000.00 \$10,000,000.00 Variable Cost (volume) 1.25(5000000) 6,250,000 Total Cost \$16,250,000.00 Revenue=P (volume) Price Per Unit \$3.25