A break-even analysis is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point.
What to use: Excel File
Open Excel file: BreakEven-formula.xlsxPreview the document
According to your business product, update both data tables. You can focus on the red italicized costs in the tables shown below. You must change all numbers.
In the results tables, the column ‘Units Sold’ can be replaced from 1, 2, 3, to 10, 20, 30 or 1000, 2000, 3000 or any other increasing scheme according to your unit price and possible break-even point
All the numbers MUST be different from the sample sheet.
What to write: Word Document
Create and name your own business (fictional business with made-up data sets)
Describe your business’ mission statement: provide a one sentence “formal summary of the aims and values of a company, organization, or individual.”
Business operation description for break-even analysis
Describe your product
Discuss Fixed Costs (land, factory/plant, equipment, etc.)
Discuss Variable Costs (labor, materials/parts, power supply, water, etc.)
The sample excel file has all formulas embedded. Briefly discuss how formulas are used in the file.
Your decision-making guidelines
Which data table is suitable for your business?
Where is the break-even point the number of units sold?
When do you need to make the break-even point; 3 months, 6 months, 1 year? Explain why.
Data Tables copy and paste both tables: data table 1 and data table 2
Screenshots (alt + PrtScn, then paste it to your Word doc) of Excel Sheet with Charts
What to submit
Submit your (a) Word doc and (b) Excel file in Canvas:
Criteria Ratings Pts
This criterion is linked to a Learning Outcome Explanation of Issues – mission and operation description
Issue/problem to be considered critically is stated clearly and described comprehensively, delivering all relevant information necessary for full understanding.
Issue/problem to be considered critically is stated, described, and clarified so that understanding is not seriously impeded by omissions.
Issue/problem to be considered critically is stated but description leaves some terms undefined, ambiguities unexplored, boundaries undetermined, and/or backgrounds unknown.
Issue/problem to be considered critically is stated without clarification or description.
This criterion is linked to a Learning Outcome Spreadsheet Solutions
Implements the solution in a manner that addresses thoroughly and deeply multiple contextual factors of the problem.
Implements the solution in a manner that addresses multiple contextual factors of the problem in a surface manner.
Implements the solution in a manner that addresses the problem but ignores relevant contextual factors.
Implements the solution in a manner that does not directly addresses the problem statement.
This criterion is linked to a Learning Outcome Organization
Organizational pattern is clearly and consistently observable and is skillful and makes the content of the presentation cohesive.
Organizational pattern is clearly and consistently observable within the presentation.
Organizational pattern is intermittently observable within the presentation.
Organizational pattern is not observable within the presentation.
Total Points: 100.0