[rdavis0214]

Please help me, I am trying to do an assignment of a Break-even analysis for my marketing project.

We will have a Salon and Spa business, where we rent booths. I have to complete a break-even analysis for Salon and Spa separately.

1.) Salon (barbers & beauticians) consist of 10 booths at $300/wk = $3000/wk which equals $3000 x 4.3/wk = $12,900/month, The total fixed cost is $11,548 (which should be shared between Salon and Spa and variable cost flutuate between $2910 - $4,000

2.) Spa (techinician & massagist) 10 booths $150/wk = $1,500/wk x 4.3/wk = $6,450/month. The total fixed cost is $11,548/monthly variable cost flutuate between $2,910 - $3,300.

I don't know where to start. Please help

[rehmanvohra]

Break even, as you perhaps know, is the fixed costs/contribution margin. For contribution margin you need sales revenue as well as related variable costs. Your post does not mention sales revenue.

You have said that the variable costs vary between $2,910 and $3,300, but you need to mention the range of activity that affect these costs.

You have also stated that the total fixed costs are $11,548, presumably these are in addition to the booth rentals, but it is not quite clear from your post.

If you can provide further information as well as your attempt to the problem, perhaps we can guide you.