Eric Asare unit 3 p4
Fixed costs (FC)
£2,000.00
Selling price (SP) – variable costs (VC)
£ £2,000.00 (FC)
£75(SP) - £69(VC) = 6
£2,000. = 333.3333333333333
From my business my fixed costs for my restaurant is £2,000.00
My selling price for my business is £30.00
My variable costs for my business is £6
How I calculated my breakeven point is £20 - £5= £15 this is contribution. £15 is
how much each product I sell contributes to the break-even point.
600 /15 = 40
I have to sell 40 products in order to break even. Break-even is when I have paid
my fixed costs off and have no other costs to pay.
If I sell 41 or more products my business will make a profit. If I sell less than 40
products I will make a loss.
1 | Page
Fixed costs (FC)
£2,000.00
Selling price (SP) – variable costs (VC)
£ £2,000.00 (FC)
£75(SP) - £69(VC) = 6
£2,000. = 333.3333333333333
From my business my fixed costs for my restaurant is £2,000.00
My selling price for my business is £30.00
My variable costs for my business is £6
How I calculated my breakeven point is £20 - £5= £15 this is contribution. £15 is
how much each product I sell contributes to the break-even point.
600 /15 = 40
I have to sell 40 products in order to break even. Break-even is when I have paid
my fixed costs off and have no other costs to pay.
If I sell 41 or more products my business will make a profit. If I sell less than 40
products I will make a loss.
1 | Page
