How to calculate breakeven points for a hotel?
For my writing report we are investing 3 million in a hotel in Brazil. In the finance part we need to make a break even point, these are the costs that we have: - 60 rooms - €50 per night - The fixed costs are €1,200,000 per year - The variable costs are 30 % of the total revenue - 60 % of the total revenue is from the hotel’s rooms department and 40% are generated from all the other operating departments (telephone, food, drinks, internet, selling point, etc.)
What is the break-even point in composite units?
Baker Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $10, $20, and $30, respectively. Variable costs per unit are $6, $12, and $18, respectively. Fixed costs are $160,000. What is the break-even point in composite units? A. 1,111. B. 1,600. C. 2,666. D. 4,000. E. 5,000.
Calculate the break-even point in unit capital-intensive manufacturing method?
Break-even is the point of zero loss or profit. At break-even point, the revenues of the business are equal its total costs and its contribution margin equals its total fixed costs. Break-even point can be calculated by equation method, contribution method or graphical method. The equation method is based on the cost-volume-profit (CVP) formula: px = vx + FC + Profit Where, p is the price per unit, x is the number of units, v is variable cost per unit and FC is total fixed cost.
How exactly should I calculate the break-even point over multiple years when my startup is losing money for its first year?
The break even point is best determined by first developing a profit budget based on how your business will look in its fully developed state at the end of your first iteration. This is generally the period 2-3 years after launch. Once you have developed this budget that breaks up the expenses between variable and fixed, you are able to then better determine your breakeven point. For example a profit budget for a fully developed business might look like this:The break even formula then is: = Fixed expenses / (Gross Profit % - Variable Expenses %). In the above example this would be= 150,000 / (60% - 20%) = $375,000 in sales per year or $31,250 per month.
Accounting Homework: Calculating break even point in units and dollars and net operating income.?
Current break-even point 385,920 + 34.80x = 54x x = 20,100 pairs of shoes and $1,085,400 in sales The company is considering paying the store manager of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales? 385,920 + 35.55x = 54x x = 20,917 pairs of shoes and $1,129,518 in sales As an alternative the company is considering paying the store manager 75 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop's net operating income or loss if 23,620 pairs of shoes are sold? The new break-even point or the old one? Old break-even point (23,620 x 54) - 385,920 - (34.80 x 23,620) - (3,520 x 0.75) = $64,944 Net operating income New break-even point (23,620 x 54) - 385,920 - (35.55 x 23,620) - (2,703 x 0.75) = $47,842 Net operating income