A stall breaks even
Training 2105 minutesbreak-even sprint
A market stall costs $30. Each item sells for $6 with $3 variable cost per sale. How many must sell?
Training goal: Separate fixed fees from per-sale costs
▶ Play this trainingSituation
1. Round 1. How much per sale goes toward the stall fee?
- $9
- $3
- $6
2. Round 2. How many sales cover $30 under these terms?
- 10 sales
- 5 sales
- 30 sales
3. Round 3. You sell 8. Result after all stated costs?
- An $18 profit
- A $24 profit
- A $6 loss
4. Round 4. Variable cost rises to $4, sale price stays $6. New threshold?
- Fewer because costs rose
- 15 sales
- Still 10 sales
What you will learn
- Revenue is not contribution toward fees
- The threshold changes as costs rise
- Breaking even does not necessarily pay for your time
Your real-life step
For a small sales activity, separate fixed fees and per-unit costs.
Questions and answers
Does break-even guarantee good income?
No. Here it only covers the stated costs.
What if demand is below the threshold?
Reconsider price, costs, format or participation.
Can fixed costs be divided by sale price?
Only with no variable costs, unlike this round.
More trainings in this module
- A percentage round trip
- The last affordable bid
- A positive month, a cash-short Tuesday
- A fee on which amount?
- Can the reserve take another hit?
- Prices in different units
Numbers are illustrative. A game, not financial advice.