Break-Even Analysis

Question

Topic: Break-Even Analysis

Details: Calculate your break-even analysis. Increase your cost by 10% and re-calculate your break-even analysis. Now, increase your cost by another 10% and re-calculate your break-even analysis.

Next, start with your original break-even analysis. Decrease your expenses by 10% and recalculate your break-even analysis. Now, decrease your expenses by another 10% and re-calculate your break-even analysis.

Submit all 5 calculations in a Word document with the following:

When increasing your costs, how much sooner do you reach your break-even? How would the increases in cost be received by your customer?
When decreasing your expenses, how much sooner do you reach your break-even? How realistic would the decreases in expenses be for your venture?
What is your final break-even analysis, the one you will use for your venture? Explain.

Startup cost:

Mobile app $20,000
Food locker $3,000 x 2

Monthly subscription:
Customer $6.99

Apple store/ google store commission fee:
15%

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