Market Mix and Breakeven Analysis
I. Biz Builder Plan Questions (located at the
Market Mix and Breakeven Analysis
I. Biz Builder Plan Questions (located at the end of the chapter in your textbook.)
Complete these topics for your specific business:
5.1 Products/Services A through G
5.2 Pricing A, B, C
5.3 Promotion A through H
5.4 Place A through D
2. CALCULATE YOUR BREAK EVEN ANALYSIS for your ‘top’ selling item. If you have a variety of items, take an average selling price for your top 2-3 items and use that information for calculating. Use the Breakeven Analysis Template tab included in the Biz Builder Financial Statement Download Biz Builder Financial Statement file here or the attached file. You will use this Excel file for all of your financial statements, as there several worksheets located on separate tabs. Be sure to back up your work so you don’t lose your hard work!
Scenario #1: For your first analysis version, be sure you are entering a $0 profit in the ‘desired profit’ (annual basis) cell. The results will be a true breakeven in units and dollars for your business. These figures are the minimum you have to sell/make in order to break even…..your sales volume exactly covers your expenses, with no profits earned.
Scenario #2. For your second calculation, add a reasonable dollar amount to the ‘desired profit’ (annual basis) cell on the template to see what your required units/dollars to make that particular amount in profit per year.
Be sure you show your Variable costs as per sales UNIT costs and your Fixed costs on an Annual basis. For instance, rent is 1,000/month, so, you would show $12,000 as rent in fixed costs. If your unit of sale to a customer is $50, then list in the Variable costs exactly the items/labor, etc required for that one unit of sale. Ideally, your costs are less than $50, which is your resulting profits.
Biz Builder Financial Statements TemplateDownload Biz Builder Financial Statements Template
Be sure to submit both scenarios of breakeven analysis. Both submissions must be submitted on the attached Financial Statement document.
Comments from Customer
Discipline: commerce
