# Need help with creating Break Even Formula

• Feb 7th 2009, 11:35 AM
mariasmiles25
Need help with creating Break Even Formula
I need some help writing a math formula for accounting. I need to write a formula which shows how many tickets for a tour need to be sold for a company to break even and put it into MS Excel. I know that BE point =fixed+variable+profit, what I am having trouble is with the kind of product being sold, as it is not like a regular item with a fixed cost (buy a shoe at cost for \$2 and sell if for \$4 kind of thing) you would sell. The tickets are for a bus tour, so you have 5 customers per tour, 3 tours per hour, and you have to take into account gas and maintenance of the bus.

Given Information
Fixed:
Rent: \$1000 per month
Insurance: \$200 per month
Employee Salary: \$2000 per month

Variable:
Employee rate (only one hourly employee): \$10 per hour
Fuel consumption: 15 gal/hour
Fuel price: \$3.00 per gallon
Average maintenance for bus: \$50 per hour

Price charged to customer: \$100 per ticket
Average amount of customers per tour: 5
Average tours per hour: 3

Any help would be appreciated. Thanks