Ice cream is sold at 1 each Breakeven calculation Example Imagine you buy an...
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Ice cream is sold at 1 each
Breakeven calculation Example Imagine you buy an ice cream machine. You spend 800 on the machine. You plan to sell ices in a local Sunday market in June, July and August (say 12 dates). The vendor's permit fee is 72 and charge for power connection is 12 (both per annum, whether you attend on every date or not). You plan to sell one batch of ice cream per day. A batch contains 120 servings. The secret formula ice cream costs you 30 per batch. Transport costs are 1.33 per day. The most you can sell your ices for is 1 Breakeven calculation Example Weekend 1 () 884.00 Weekend 2 () n/a Fixed costs Variable costs 31.33 31.33 Revenue 120.00 120.00 88.67 88.67 Operating profit Accumulated profit or loss -795.33 -706.66 Breakeven occurs when operating profit equals fixed costs in Weekend 10. Can you calculate how many ice creams must be sold to reach the breakeven point
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