Walmart Breakeven Analysis

Wal-Marts Break veritable(a) Analysis
K arn E. Wilkerson
TUI
Principles of Accounting
ACC403 Module 2 SLP
Dr. Nesbitt
February 17, 2012

Wal-Marts Break Even Analysis

Fixed cost are costs that are the same regardless of how many items you sell. All start-up costs, such as rent, indemnification and computers, are considered unconquerable costs since you have to make these outlays sooner you sell your first item. Variable costs are r all the sameant costs that you absorb with each social unit you sell. For example, if you were operating a greeting card store where you had to buy greeting cards from a stationary company for $1 each, then that horse represents a variable cost. As your business and sales grow, you faecal matter begin appropriating labor and other items as variable costs if it makes sense for your industry. Once you have done that, you then practice your selling worth. This is critical to your breakeven analysis; you cant calculate likely revenues if you dont crawl in what the unit price lead be. Unit price refers to the number you plan to charge customers to buy a single unit of your product.
The name of the organization is Wal-Mart. It is the biggest retail chain in terra firma having turnover of more than $378 billion. The hypothetical figure that I am going to use is Mexico for the year of 2010.



Break-even analysis is a technique widely used by production focus and management accountants. It is based on categorizing production costs between those which are variable (costs that change when the production output changes) and those that are fixed (costs not directly related to the volume of production).  Break even in Units is calculated by Fixed- costs/Contribution valuation account per unit. 
Analysis for Wal-Mart 
I am providing hypothetical figures for Wal-Mart in atomic number 20  
Fixed Costs= $500 million per year 
These will include Rent, Insurance, Salary and so forth 
Average Sales price per unit= $5 
Variable Cost per unit= $3 
These will include Product costs, sales commission etc. 
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