Break-Even Analysis & Business Plan

You are considering the start of a small  business that sells generator gaskets.   According to your market research, you can sell each gasket for  $12.  Your fixed costs for the business  are estimated at $35,000 and you estimate your variable costs to be $6 per  gasket.Required:How many units will you have to sell to break  even in the business? Calculate the breakeven point in units, and then in  dollars.In order to make the business a worthwhile  activity, you require a $20,000 profit.   How many units would you have to sell to make this venture worthwhile?Explain how breakeven analysis can be useful to  the person starting a small business and/or to an existing small business.

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