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Project Report Example

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nhuhuyenphan22
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5 views

Project Report Example

Uploaded by

nhuhuyenphan22
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Calculating the Breakeven Point and Achieving 20% Profit for [Business Name]

Introduction

In this report, I present the financial analysis of my startup business, [Business Name],
which offers [describe the product/service]. The goal of this project is to determine the
breakeven point, which is when the business starts covering all its costs without making a
loss, and then to calculate the number of units required to reach a 20% profit. This analysis
will help us understand the financial viability of the business and provide insights into how
we can achieve profitability.

Body

1. Business Description

- Product/Service: [Brief description of the product or service].


- Target Market: The business aims to cater to [target customers and market].
- Pricing Strategy: The product is priced at $[unit price], considering the market demand
and competition.

2. Cost Analysis

- Fixed Costs: Initial costs include rent, equipment, and salaries, totaling $[fixed costs].
- Variable Costs: Variable costs include materials, production costs, and packaging,
amounting to $[variable cost] per unit.

3. Mathematical Model

- Total Cost Equation: C(x) = Fixed Costs + Variable Cost × Number of Units
C(x) = [Fixed Costs] + [Variable Cost] × x
- Revenue Equation: R(x) = Price per Unit × Number of Units
R(x) = [Unit Price] × x

4. Breakeven Point Calculation

To find the breakeven point, we set the total cost equal to the revenue:
[Fixed Costs] + [Variable Cost] × x = [Unit Price] × x
Solving for x, we find that the breakeven point is at [number of units].
Revenue at Breakeven Point: $[Revenue at breakeven point].

5. 20% Profit Calculation

To achieve a 20% profit, the target revenue must be:


Revenue = (1 + 0.20) × Total Cost at Breakeven
Substituting the values, we calculate the number of units needed to reach this revenue and
the corresponding profit.
6. Excel Analysis

The calculations were performed in Excel, and the data was visualized using a line graph
showing the intersection of the cost and revenue lines, representing the breakeven point.
The graph also highlights the point where the 20% profit is achieved.

Conclusion

Through this project, I learned the importance of understanding cost structures and pricing
strategies in a business. Calculating the breakeven point provided insights into the
minimum sales needed to cover costs, while the 20% profit projection allowed me to set
realistic financial goals. This analysis is essential for any entrepreneur to ensure a
sustainable and profitable business model.

Appendix

- Graphs and tables from the Excel sheet displaying the breakeven point and the revenue
projection.
- Detailed calculations for reference.

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