Planning and Budgeting

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Oscar D


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September 21, 2016







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Contribution Margin Unit Sales Price $12.00 - Unit Variable Cost .40 = Unit Contribution Margin $11.60 2. Annual Break-even Point (Haircuts) In order to find the break even point one must take total yearly expenses (120,000) and divide them by the unit contribution margin (11.60). This business must generate enough sales to equal total fixed costs...
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This business must generate enough sales to equal total fixed costs. By finding the break-even point they know how many haircuts need to be given in order for the business to survive. Each barber must give approximately 42 haircuts a week to make this goal. 120,000/11.60=10344.83 or 10345 break-even point 3...
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