Break even point question

MariaSmiles25

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Joined
Feb 7, 2009
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I need some help writing a math formula for accounting. I need to write a formula which shows how many tickets for a tour need to be sold for a company to break even and put it into MS Excel. I know that BE point =fixed+variable+profit, what I am having trouble is with the kind of product being sold, as it is not like a regular item with a fixed cost (buy a shoe at cost for $2 and sell if for $4 kind of thing) you would sell. The tickets are for a bus tour, so you can have 5 customers per tour, 3 tours per hour, and you have to take into account gas and maintenance of the bus.

Given Information
Fixed:
Rent: $1000 per month
Insurance: $200 per month
Employee Salary: $2000 per month

Variable:
Employee rate (only one hourly employee): $10 per hour
Fuel consumption: 15 gal/hour
Fuel price: $3.00 per gallon
Average maintenance for bus: $50 per hour

Price charged to customer: $100 per ticket
Average amount of customers per tour: 5
Average tours per hour: 3


Any help would be appreciated. Thanks
 
MariaSmiles25 said:
I know that BE point =fixed+variable+profit...
Actually, the break-even point is where revenues finally catch up to (break even with) costs, so the profit is no longer negative (a loss), but zero.

MariaSmiles25 said:
Fixed:
Rent: $1000 per month
Insurance: $200 per month
Employee Salary: $2000 per month
So what is the total fixed monthly cost?

MariaSmiles25 said:
Variable:
Employee rate (only one hourly employee): $10 per hour
Fuel consumption: 15 gal/hour
Fuel price: $3.00 per gallon
Average maintenance for bus: $50 per hour

Price charged to customer: $100 per ticket
Average amount of customers per tour: 5
Average tours per hour: 3
You have an average number of tours per hour (and other per-hour information), but nothing about how many hours a day, week, or month are to be assumed. Lacking that, I see no way to proceed. Sorry! :oops:

Eliz.
 
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