Break Even Point

*This is a short answer assignment and are no word count requirements. Writer is required to provide an in depth response with proper citations.* Using the steps in Clement Ojugo’s article, “Knowing your break-even point critical to good decision making,” solve the following: You are opening a new retail shop and estimated fixed costs for the vacant facility are $7,500 per month. Estimate that items will sell for approximately $30 each, the combined variable cost of product and labor are estimated at $10 with a selling price of $30. You feel certain that the market for this new retail shop is 100 transactions per day. Determine if you should open the retail shop in this vacant space. Include the break-even transactions, CM%, and the break-even dollar amount. Explain your answer (include rationale if your answer is yes or no).

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