Break-Even Point

[Joylene]

Please help me figure out what formula goes in the "Price per Unit" field to determine my break-even point. Use the information below to determine the formula.

Create a data table that analyzes the break-even for a new shrub for prices between $3.00 and $9.25 in increments of $0.25. You can calculate the number of units you must sell to break even (break-even point) if you know the fixed expenses, the price per unit, and the expense (cost) per unit. The following formula determines the break-even point:

Break-Even Point = Fixed Expenses / (Price per Unit - Expense Per Unit)

Assume fixed Expenses = $300,000; Price per Unit = $7.50; and Expense per Unit = $2.10. Use the Price per Unit as the input cell and the break-even value as the result.

Fixed Expenses: $300,000.00 (Cell#C3)
Price Per Unit: $7.50 (input cell) (Cell#C4)
Expenses Per Unit: $2.10 (Cell#C5)
Units to Break Even: 55,556 (Cell#C6)

Price Per Unit Units to Break-Even
55,556 (Cell#C8)
3.00 333,333
3.25 260,870
3.50 214,286
3.75 181,818
4.00 157,895
4.25 139,535
4.50 125,000
4.75 113,208
5.00 103,440
5.25 95,238
5.50 88,235
5.75 82,792
6.00 76,923
6.25 72,289
6.50 68,182
6.75 64,516
7.00 61,224
7.25 58,252
7.50 55,556
7.75 53,097
8.00 50,847
8.25 48,780
8.50 46,875
8.75 45,113
9.00 43,478
9.25 41,958

Thanks, Joylene Taylor

 

[jolivanes]

Is this what you mean?

In Cell C6, enter following: =C3/(C4-C5)

 

[Joylene]

Thank you, but that isn't right. You would use the Price per Unit (C4) as the input cell for the formula and that would give you the the number of units to break even in cell# C6. Which is 55,556. I have the numbers, but not the formula to get the numbers.

Joylene

 

[jolivanes]

Joylene.

Maybe I misunderstood

Enter 300 in Cell C3, 7.50 in Cell C4, 2.10 in Cell C5 and the formula in Cell C6.
What do you get for an answer in C6?

 

[Joylene]

I don't have a formula. That is what I need. I was given all the data. I am going backwards now. I need the formula and if it is right all of the data, which I have will automatically be filled in, that is how I will know the formula is correct.

Thanks

 

[jolivanes]

In the 2nd post, did you see: =C3/(C4-C5)
Copy this and paste it in cell C6.
Let us know what you see in C6

 

[RonB1111]

The formula to put in C4 is:
=C3/C6+C5