Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point?Select ALL that apply.
Greg needs to know hisfixed costs, variable costs, and price per car washto determine his break-even point.
For example, if:
Fixed costs(rent, bills) = £100/day
Variable cost per car wash(soap, sponges) = £5
Price per car wash= £10
Thebreak-even pointis when revenue = costs, which means washing20 cars per day(£10 × 20 = £200 revenue, covering fixed and variable costs).
Number of customers (C) is incorrect, as this iscalculated from the break-even formula, not an input.
Number of employees (E) is incorrect, as it isnot a direct factorin the break-even calculation (only their wages as part of fixed costs).
(LO 1.3)
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