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July 13th, 2010, 07:11 PM   #1
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Breakeven point

It costs 2,000,000 to develop a trial product that will be on the market for one year and 5,000 per unit produced. If maximum potential demand for the product is estimated to be 100,00 units and each unit can be sold for 7,000, what % of potential demand do they need to break even?
jamesk486 is offline  
July 29th, 2010, 04:09 AM   #2
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Re: Breakeven point

What is each unit's contribution margin? (Selling price per unit, minus the unit production cost (which doesn't include the fixed start-up costs))

At such unit contribution margin, how many units need to be sold to exactly pay for the initial development costs?

What percentage of the expected total market does this breakeven quantity of units represent?

Have a go at it.
LochWulf is offline  
April 8th, 2011, 01:01 PM   #3
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Re: Breakeven point

I have a project related to determining a breakeven point and i need help to finish it.

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