Problem: How do you conduct a break even analysis and can one be done with the following information, using the numerical calculations break-even analysis?
A County Sheriff's Department sells its products (officers) to contract cities at a cost of $197,000 per officer. Each officer works 40 hours per week. The contract city purchased 21 officers for the 2006-2007 fiscal year. They have 11 vehicles. It has the following annual costs:
Item Annual costs
Rent $1,100,000
Officer salaries $86,000
Vehicle maintenance and fuel $11,500 per vehicle