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Step 1:Label These CostsFixed or Variable
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Full Time EmployeeFixed
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Monthly RentFixed
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Cost of HamburgerVariable
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Step 2:Determine AmountsTotal Cost
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Full Time Employee$30,000Per Year
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Rent$1,000Per Month
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Cost of Hamburger$2Per Hamburger
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Selling Price$7Per Hamburger
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Step 3:
Find Unit/Contribution Margin
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Selling Price$7
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Variable Cost Per Unit$2
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Unit/Contribution Margin$5
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Step 4:Cost to Break Even
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Total Fixed Costs Per Year
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Full Time Employee$30,000
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Rent$12,000($1,000 * 12)
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Total Fixed Costs Per Year$42,000
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Divide by Unit Margin$5
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Total Units to Break-Even8400
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Total Units Per Month700
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Total Units Per Day23
Assumes Open Every Day
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Total Units Per Hour2.88
Assumes 8 Hour Day
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Step 5:Total Margin Analysis
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Units/Hamburgers Sold8400
Input Here (Annual)
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Total Revenue$58,800
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Full Time Employee (FTE)$30,000
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Rent$12,000
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Cost of Goods Sold$16,800
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Total Expenses$58,800
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Total Margin$0
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