Calculate the breakeven point


Problem 1: Calculate the Breakeven point based on the following assumptions:

  • Assume the client provides only one type of products: Frozen Broccoli
  • Costs of production: $0.75/product
  • Cost of shipment: $0.5/product
  • Fixed Costs: $150,000
  • Price: 2$/product (Answer will be 200,000)

Problem 2: Recommend to the client which of the following 3 options:

Option a): Shipment Quantity: 180,000 - Sales Volume: 150,000

Option b): Shipment Quantity: 200,000 - Sales Volume: 170,000

Option c): Shipment Quantity: 220,000 - Sales Volume: 180,000

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