Task 7 – Break-even analysis

Karl is attempting to calculate the break-even point of the business. He has calculated the estimated income and expenses as follows:

Average sale value of a meal $25.20

Average cost of each meal         $11.70

Her estimated fixed annual expenses have been calculated as follows:

Rent                             $14,400

Telephone                     $2,200

Staff wages                     $36,000

Superannuation             $3,420

Printing and stationery    $1,200 

You are required to calculate the break-even point for a 12 month period expressed as:

a) number of sales 

b) dollar value.

c) You are also required to provide a proof statement.