Calculation of Breakeven

Question 1

Formula for breakeven
Write down formula first

Answer 1

Fixed costs/contribution per unit

Question 2

2nd step
Calculate contribution per room
84-34 = 50

Answer 2

Contribution per room
84-34 = 50

Question 3

Calculate monthly fixed costs

Answer 3

30000/12 =2500

Question 4

THEN do BE
2500/50

Answer 4

Be 2500/50
To break even need to sell 50 rooms per month

Question 5

Summarised

Answer 5

BE FORMULA
contribution per unit 84-34
Monthly fixed costs 30000/12
BE formula again