Mary is concerned with evaluating her business based on the break-even point. Last year, in her business with 550 sales

Mary is concerned with evaluating her business based on the break-even point. Last year, in her business with 550 sales

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Mary is concerned with evaluating her business based on the break-even point. Last year, in her business with 550 sales
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Mary is concerned with evaluating her business based on the break-even point.┬áLast year, in her business with 550 sales (all of the same product), she had the following annual expenses:Salary (flat rate): $50,000Rent: $50 per unit soldUtilities (flat rate): $8,000This year, salary expenses are expected to increase 10% while all other expenses will increase 5%. Assuming last year’s revenues of $96,250 are expected to increase 25% this year with no change to the per unit selling price of products sold, how will the break-even point change? What advice would you give Mary about solely evaluating business performance via the break-even point?

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To calculate the break even point we first need to determine the total fixed costs and variable cost
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