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July 13th, 2010, 07:11 PM  #1 
Newbie Joined: Jul 2010 Posts: 3 Thanks: 0  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?

July 29th, 2010, 04:09 AM  #2 
Newbie Joined: Jul 2010 Posts: 10 Thanks: 0  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 startup 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. 
April 8th, 2011, 01:01 PM  #3 
Newbie Joined: Mar 2011 Posts: 5 Thanks: 0  Re: Breakeven point
I have a project related to determining a breakeven point and i need help to finish it. If any opt to do the job and get paid for it please join me on http://www.myfinanceforum.com/viewtopic ... cb8dd21f5a 

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