The assignment is to design and sell a motorized stroller for $200. The things listed under the fixed expenses and variable expenses are things and prices assumed however they can be changed since you are the one designing and selling the stroller.
Profit = (Sales - Variable expenses) - Fixed expenses
Sales = Variable expenses + Fixed expenses + Profit
Fixed Expenses
Depreciation office $600
Gas for transportation $10.00
Rent and utilities $900
Insurance $1000
Wages (50 employees @$8) $400
Total fixed expenses: $2,910
Variable Expenses
Stroller $200
Advertising $75
Total variable expenses: $275
1. When will the company break-even, show on a Break-even Table/Chart and Explanation of the Break-even Table/Chart.
2. Sales Forecast: lst year by month; 2nd and 3rd years by quarter