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A home building contractor presently subcontracts concrete work. The average cost for the purchased concrete work at a new home is $2,100. For $29,000 per year, the building contractor can lease equipment (concrete pumper truck etc) and do the work himself. He will spend $1,600 to train some of his crew. If he does the concrete work in-house, his labor and materials costs will average about $1,400 per new house he pours a driveway in.

The break even point for this problem is 44 when rounded up. How can I draw and fully label the break-even graph for the first year?

2007-02-14 06:49:57 · 1 answers · asked by Anonymous in Business & Finance Small Business

1 answers

The fixed costs for the task is $ 30,600 which is represented by a straight (horizontal ) line going across the Y-Axis at $ 30,600.

on Excel Y= $30,600

The income made per job ($2,100-1,400) is $ 700.
for data point for the X values : X @1= $700, X @2=$1,400,
X @3 = $2,100

When Straight lined graphed on Excel the intersecting point on the upward sloping income line will be the 44 houses (jobs).

That's the answer but that's a lot of concrete to pour just to get to break even.

2007-02-14 07:10:40 · answer #1 · answered by Ronatnyu 7 · 0 1

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