Break Even Assignment

Team :
Amlie Borschneck
Claudius
Dan Vo
Qiang Guo

Shriman Narayan Tiwari

all costs in Euros
1 unit time cost/person
30mins=0.5
max hours / person / month =35*4=140
Number of product / 1 person =140*2=280
Selling price /1product
76

Cost of unit
2.95
Cost of unit
7.6
material cost: 2.95 + 7.60 = 10.55

in EUROS
Employees
Boxes bought
Inventory bought
Inventory in store

INCOME STATEMENT
MONTH 1
MONTH 2
MONTH 3
15
15
2
2

MONTH 4
7
0

7
1

6000

6000

3000

6000

7800

3600

4640

4200

4200

1960

1960

Inventory left for next mo

1800

3600

1640

2680

COST OF Inventory
Labour Cost
FIXED COST

63300

63300

31650

147750

147750

68950

68950

47000

47000

47000

47000

TOTAL TO PAY IN THE MO

258050

258050

115950

147600

SALES

319200

319200

148960

Initial Investment

Profit this month (savings

-258050

61150

203250

1360

Net Profit

-258050

-196900

6350

7710

Production (# of units)

we need to start off with 196900 Euros

lets say we start with "I" as an investment

lets say we have n-person working as full time employee

No of units produced in 1 month
Income from sales = n*280*76
fixed cost
labour cost

n*280
n*21280
47000
n*9850

requirement from suppliex

material cost = n*10.55*280

ceiling( (n*28/300) )
x*3000*10.55

excess left for next month

ceiling( (n*28/300) ) *3000 - n*280

1h - 2 products

Month 5

Month 6

Month 7

7
1

7
1

7
1

3000

3000

3000

5680

6720

7760

1960

1960

1960

3720

4760

5800

31650

31650

31650

68950

68950

68950

47000

47000

47000

147600

147600

147600

148960

148960

148960

1360

1360

1360

9070

10430

11790

all costs in Euros

1 unit time cost/person
max hours / person / month
Number of product / 1 person
Selling price /1product

Cost of unit
2.95
Cost of unit
7.6
material cost: 2.95 + 7.60 = 10.55

CURRENT ASSETS
Account receivable
Inventory
Cash reserves

Balance Sheet
Month 1
Month 2

Month 3

319200

319200

148960

18990

37980

17302

lets say we start with "I" as an investment

lets say we have n-person working as full time employee
No of units produced in 1 month
Income from sales = n*280*76
fixed cost
labour cost
requirement from supplier
material cost = n*10.55*280

n*280
n*21280
47000
n*9850
x

ceiling( (n*28/300) )
x*3000*10.55

excess left for next month

ceiling( (n*28/300) ) *3000 - n*280

30mins=0.5 1h - 2 products
=35*4=140
=140*2=280
76

Month 4

Month 5

Month 6

148960

148960

148960

28274

39246

50218

) *3000 - n*280

all costs in Euros

1 unit time cost/person
max hours / person / month
Number of product / 1 person
Selling price /1product

Cost of unit
2.95
Cost of unit
7.6
material cost: 2.95 + 7.60 = 10.55
Cash Flow
Month 1
Opening Cash
Income from sales
COST OF Inventory
Labour Cost
FIXED COST

Month 2

196900

Month 3

-61150

319200

319200

63300

63300

147750

147750

68950

47000

47000

47000

TOTAL TO PAY IN THE MONTH

Closing cash

258050

258050

115950

-61150

203250

lets say we start with "I" as an investment

lets say we have n-person working as full time employee
No of units produced in 1 month
Income from sales = n*280*76
fixed cost
labour cost
requirement from supplier
material cost = n*10.55*280
excess left for next month

n*280
n*21280
47000
n*9850
x

ceiling( (n*28/300) )
x*3000*10.55
ceiling( (n*28/300) ) *3000 - n*280

30mins=0.5 1h - 2 products
=35*4=140
=140*2=280
76

Month 4

Month 5

203250

Month 6

204610

Month 7

205970

207330

148960

148960

148960

148960

31650

31650

31650

31650

68950

68950

68950

68950

47000

47000

47000

47000

) *3000 - n*280

147600

147600

147600

147600

204610

205970

207330

208690

Month
Number of Employ
Units production c

1
2
560

2
4
1120

3
6
1680

4
8
2240

5
9
2520

1
3000
0
560

0
0
2440
1120

1
3000
1320
1680

0
0
2640
2240

1
3000
400
2520

fixed cost
47,000.00
variable cost mater 31,650.00
variable cost emp
19,700.00

47,000.00
0.00
39,400.00

47,000.00
31,650.00
59,100.00

47,000.00
0.00
78,800.00

47,000.00
31,650.00
88,650.00

Boxes bought
Units bought
Units in inventory
Units produced

Income
Profit

0
-98,350.00

42,560.00
-43,840.00

85,120.00 127,680.00 170,240.00

-52,630.00
1,880.00
2,940.00

Sum of Profit f -194,820.00

6
9
2520

7
13
3640

8
16
4480

9
22
6160

10
31
8680

11
39
10920

1
3000
880
2520

1
3000
1360
3640

2
6000
720
4480

2
6000
2240
6160

3
9000
2080
8680

3
9000
2400
10920

47,000.00
47,000.00
47,000.00
47,000.00
47,000.00
47,000.00
31,650.00
31,650.00
63,300.00
63,300.00
94,950.00
94,950.00
88,650.00 128,050.00 157,600.00 216,700.00 305,350.00 384,150.00
191,520.00 191,520.00 276,640.00 340,480.00 468,160.00 659,680.00
24,220.00 -15,180.00
8,740.00
13,480.00
20,860.00 133,580.00

12
45
12600
5
15000
480
12600
47,000.00
158,250.00
443,250.00
829,920.00
181,420.00