200

 

 

 

 

-628.09

5th year.

 

 

 

 

 

1700

 

 

 

 

 

 

200

 

 

 

 

-226.44

6th year.

 

 

 

 

 

1700

 

 

 

 

 

 

200

 

 

 

 

-309.48

7th year.

 

 

 

 

 

1700

 

 

 

 

 

 

200

 

 

 

 

-388.81

8th year.

 

 

 

 

 

1700

 

 

 

 

 

 

300

 

 

 

0

-1,034.72

9th year.

 

 

 

 

 

300

 

 

 

0

-1,080.88

10th year.

 

 

 

 

 

750

 

 

 

 

750.00

Buy back.

 

 

 

 

 

 

1

 

3

 

 

390.00

After tax buy back expense.

 

 

 

 

 

 

 

 

43

 

239.43

Present value.

 

 

 

 

 

 

 

2

 

 

 

-150.49

Net lease advantage.

 

 

 

 

 

 

Break-Even Analysis

Break-even analysis is basically a technique for analyzing the relationships among fixed costs, variable costs, and income. Until the break even point is reached at the intersection of the total income and total cost lines, the producer operates at a loss. After the break-even point each unit produced and sold makes a profit. Break even analysis may be represented as follows.

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