EXERCISE 6: CALCULATING THE PV RATIO AND THE BREAK-EVEN POINT With the information outlined below, calculate the following: 1. Profit 2. Break-even point in revenue 3. Cash break-even point Depreciation $ 30,000 Plant direct wages 100,000 Plant supervision 60,000 Advertising 30,000 Plant insurance 20,000 Sales commissions 100,000 Office supplies 3,000 Revenue 550,000 Overtime 30,000 Rent 35,000 Property taxes 10,000 Raw materials 100,000

EXERCISE 6: CALCULATING THE PV RATIO AND THE BREAK-EVEN POINT With the information outlined below, calculate the following: 1. Profit 2. Break-even point in revenue 3. Cash break-even point Depreciation $ 30,000 Plant direct wages 100,000 Plant supervision 60,000 Advertising 30,000 Plant insurance 20,000 Sales commissions 100,000 Office supplies 3,000 Revenue 550,000 Overtime 30,000 Rent 35,000 Property taxes 10,000 Raw materials 100,000

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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