Need an research paper on the sales breakeven point. Needs to be 4 pages. Please no plagiarism.
The sales breakeven point and the unit breakeven point are directly related so that an increase in one causes an increase in the other. For the year 2003, the break-even sales was the total selling expense added by the cost of goods sold: 3679+4326=8005
This being the total expense, the firm has to make revenue equal to it to be able to break even. Given sales $8583 and sales tickets as 5341, the cost per ticket is arrived at as follows:
Save your time – order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now
Thus the break-even number of sales tickets is:
For the year 2004,
.The break-even in sales is: 4132+3758=7890
Cost per unit sale ticket is: 8102/5316=$1.52
Thus the break-even number of sales ticket is:  .7890/1.52=5191 units of sales tickets
For the year 2006,
Sales break even is: 5570+5547=11117
The cost per unit sales ticket is 10711/6897=1.55
Break-even sales tickets = 11117/1.55= 7172 sales tickets
. . . . . . . . . . . The break-even sales are dollars has reduced from the year 2003 to 2004. This is attributable to the reduction in the cost of goods sold resulting from the reduction in the goods sold in the year 2004 compared to the year 2003. However, the break-even sales tickets have increased in the year 2004 in comparison with 2003 from the data above. This is attributed to the increase in selling cost while the total sales have decreased thus more units are sold to meet the increasing expense. In the year 2006, the sales break-even has increased due to the increase in total expenses while the break-even tickets have also increased to cover the increasing expense.  .The margin of safety has also been decreasing over time so that in 2003 it was $578 and it came down in 2004 to $212 then going negative in the year 2006 by $ 406. The reduction in a margin of safety in the first two years is attributable to the general fall in sales. However, in 2006, the sales increased but the expense also increased with a higher proportion than the sales so that the end result is a loss to the firm.
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”