You Are Starting a Business and as Part of Your

question 20

Essay

You are starting a business and as part of your business plan you need to develop a break-even analysis. Your fixed costs (overhead)associated with your store are $1,000,000 annually, and your selling price per item is $2,500. If you have a labor cost of $500 per unit, marketing costs of $250 per unit, and other variable costs of $500 per unit, what is your break-even point of sales?

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Definitions:

Sensory Receptors

Specialized cells or neuronal pathways that respond to changes in the environment and send signals to the brain.

Vision

The ability to interpret the surrounding environment by processing information contained in visible light reaching the eyes.

Fovea

A small area at the center of the retina that provides the clearest and sharpest vision because it has the largest concentration of cones.

Visual Accommodation

The ability of the eye to change its focus from distant to near objects (and vice versa) by changing the lens shape.