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Example 2
What is the estimated maximum fixed cost you can afford to manufacture 10,000 water filters,
if your desired selling price is 45.00? Assume the cost per unit is 23.00. Since you want to
calculate the maximum fixed cost, your profit for the purpose of the example will be 0.00.
Table 1 1-3 Calculating the projected maximum fixed cost
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Description
BK EV CLR
Clears break-even memory.
(message flashes, then
disappears)
10,000.00
Inputs the projected number of units.
45.00
Inputs the projected selling price.
23.00
Inputs the variable cost per unit.
0.00
Inputs the profit, in this case, 0.
220,000.00
Calculates the maximum projected
fixed cost to develop and market the
water filter.
Break-even 111
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