CHAPTER S7: Example S3

Breakeven Analysis
Enter
Enter the
the fixed
fixed and
and variable
variable costs
costs and
and the
the selling
selling
price Cost-volume an
price in
in the
the data
data area.
area. You
You may
may enter
enter aa volume
volume atat
which
which to to perform
perform aa volume
volume analysis.
analysis.
50000
Data 45000
Option 1 40000
Fixed cost 10000 35000
Variable cost 2.25

$
30000
Revenue 4
25000
20000
Results 15000
Breakeven points 10000
Units 5714.285714286 5000
Dollars $ 22,857.14 0
0 2000 4000 6000
Un

Costs R

Graph
Units Costs Revenue
0 10000 0
11428.5714285714 35714.28571429 45714.286
 Cost-volume analysis

4000 6000 8000 10000 12000 14000

Units

Costs Revenue
CHAPTER S7: Example S7

Capital Investment
Enter
Enter the
the data
data in
in the
the shaded
shaded area
area

Interest rate 06%

Data
Initial investment

Cash flow Inflow outflow

Period 1 7000 0
Period 2 7000 0
Period 3 7000 0
Period 4 7000 0
Period 5 7000 0

Salvage value 0

Results
In/Out Net PV $29,486.55 $0.00
Total Net PV $29,486.55
CHAPTER S7: Example S3

Breakeven Analysis
Enter
Enter the
the fixed
fixed and
and variable
variable costs
costs and
and the
the selling
selling
price Cost-volume an
price in
in the
the data
data area.
area. You
You may
may enter
enter aa volume
volume atat
which
which to to perform
perform aa volume
volume analysis.
analysis.
50000
Data 45000
Option 1 40000
Fixed cost 10000 35000
Variable cost 2.25

$
30000
Revenue 4
25000
20000
Results 15000
Breakeven points 10000
Units 5714.285714286 5000
Dollars $ 22,857.14 0
0 2000 4000 6000
Un

Costs R

Graph
Units Costs Revenue
0 10000 0
11428.5714285714 35714.28571429 45714.286
 Cost-volume analysis

4000 6000 8000 10000 12000 14000

Units

Costs Revenue