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Healthy Spring Water Break Even Analysis Baseline Assumptions Sales Price = $20 / unit...

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Accounting

Healthy Spring Water Break Even Analysis

Baseline Assumptions

Sales Price = $20 / unit

Base Sales of 2,000 units @ $20 / unit = $40,000

Fixed costs are $20,000, $10.00 / unit

Variable costs = $16,000 , $8.00 / unit

1)What is Break-even in units for Healthy Spring Water?

1)I want to spend $40,000 on advertising. How many more units do I need to sell to break even on this advertising expenditure?

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