Suppose you estimate a sale price of $ 30 and the amount of sale is 10.000 units. The variable cost is $ 20 per unit and the fixed cost is $ 30,000. You need an initial investment of $ 180,000 that includes a plot of land for 30,000. The depreciation rate is 20%. The tax rate is 34%.
Make a profit and loss statement (results)
What is the break-even point and what is the sensitivity of the production amount if you expect a net profit of $ 20,000