Breakeven Analysis Worksheet The product design for the hockey game needs some m

Question

Breakeven Analysis Worksheet The product design for the hockey game needs some more analysis. To use the space at the Xcel Center it is going to cost $1000 per game. Your product is going to sell at $15 per unit (revenue) and the cost to produce is $5 per unit (variable cost). What is your team's breakeven point (Qbep)? Show all calculations in the space provided. What is your total profit when 750 units are sold for one game, using the costs given above? Do not determine the salespersons costs or salaries, their time is donated. Using Excel Sketch a graph of the quantity breakeven point below for a graphic representation of the costs versus the quantity. Put quantity on the horizontal axis and costs on the vertical axis. The product makes $250.000 a year for profit over the next five years. Determine what the net present value (NPV) of the product is. Or how much would you sell the idea and business for? Value of the business today?

Explanation / Answer

Break even point = 1000/(15-5)=100 units;;Profit for 750 units is 750*(15-5)-1000=6500;;

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