Breakeven Analysis. The Midtown Filling Station is a gasoline retailer in Denton, Texas. Louie DePalma, proprietor of Midtown, has decided to prepare a financial analysis of the potential of a 24-hour convenience store operation. Opening such a center would require remodeling the filling station and the hiring of additional cash register attendants, but mechanics would still work only from 8 am to 5 pm. Estimated first year expenses for the Midtown's service and convenience center are:
Mechanic and attendant salary expenses are estimated on an hourly basis, reflecting any additional salary and overtime costs. Supplies and remodeling expenses are above and beyond those required for normal facility operations. Equipment costs represent a prorated share of the centers fixed equipment-leasing costs. Electricity costs of $3,000 reflect additional anticipated usage, whereas heat and taxes of $2,000 reflect an allocated share of fixed expenses.

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Breakeven Analysis. The Midtown Filling Station is a gasoline retailer in Denton, Texas. Louie DePalma, proprietor of Midtown, has decided to prepare a financial analysis of the potential of a 24-hour convenience store operation. Opening such a center would require remodeling the filling station and the hiring of additional cash register attendants, but mechanics would still work only from 8 am to 5 pm. Estimated first year expenses for the Midtown's service and convenience center are:
  Mechanic and attendant salary expenses are estimated on an hourly basis, reflecting any additional salary and overtime costs. Supplies and remodeling expenses are above and beyond those required for normal facility operations. Equipment costs represent a prorated share of the centers fixed equipment-leasing costs. Electricity costs of $3,000 reflect additional anticipated usage, whereas heat and taxes of $2,000 reflect an allocated share of fixed expenses.

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The Answer of Breakeven Analysis. The Midtown Filling Station is a gasoline retailer in Denton, Texas. Louie DePalma, proprietor of Midtown, has decided to prepare a financial analysis of the potential of a 24-hour convenience store operation. Opening such a center would require remodeling the filling station and the hiring of additional cash register attendants, but mechanics would still work only from 8 am to 5 pm. Estimated first year expenses for the Midtown's service and convenience center are:
  Mechanic and attendant salary expenses are estimated on an hourly basis, reflecting any additional salary and overtime costs. Supplies and remodeling expenses are above and beyond those required for normal facility operations. Equipment costs represent a prorated share of the centers fixed equipment-leasing costs. Electricity costs of $3,000 reflect additional anticipated usage, whereas heat and taxes of $2,000 reflect an allocated share of fixed expenses.