Question Description
Need to know the unit price for a Dyson home vacuum cleaner. Top of the line Dyson's usually sell around $ 700.
Please present your financial analysis in a table that includes the following:
1. Forecasted total number of units sold
2. Forecasted average unit price (AUP)
3. Forecasted total sales in $$$
4. Forecasted average unit variable cost
5. Forecasted fixed cost
6. Total sales in $$$
7. Breakeven point (units)
8. Breakeven point ($$$)
Breakeven analysis is a technique the relationship between the total cost and total revenue to determine profitability at various levels of production
Total cost = Fixed cost + Variable cost
The breakeven point (units) is the number of units sold at which total revenue is equal to total cost i.e. zero profitability.
Breakeven point (units) = Fixed Cost/(Unit price – Unit variable cost)
Breakeven point ($$$) = Breakeven point (units) X AUP
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