calculating break even points
Sales (2,000 tables @ $100 per table) $ 1,000,000
Variable expenses 400,000
Fixed expenses 120,000
How to compute the contribution margin (CM)?
(sale price per table) $500-$200=500/300 $200
How many tables must be sold in order for my store to break even?
What dollar amount of sales of tables is necessary to break even?
The store might go out of business and I'm trying to help the older understand with the break even point maybe, but not sure if the calculation is corrected. Please help with an example step by step to get an clearer understanding.