Hallstead Jewelers Loss Case

2003

$4,326,000 Variable Cost / 5341 Ticket Sales = $810 VC per Ticket

$1607 per Ticket - $810 VC per Ticket = $787 Contribution Margin

$3679000 Fixed Costs / $787 CM = 4616 Tickets to Break Even

4616 Tickets * $1607 per Ticket = $7,417,912 to Break Even

$8,583,000 Sales - $7,417,912 Break Even = $1,165,088 Margin of Safety

2004

$4,132,000 Variable Cost / 5316 Tickets = $777 VC per Ticket

$1524 per Ticket - $777 VC per Ticket = $747 Contribution Margin

$3,758,000 Fixed Cost / $747 CM = 5031 Tickets to Break Even

5031 Tickets * $1524 per Ticket = $7,667,244 to Break Even

$8,102,000 Sales - $7,667,244 Break Even = $434,756 Margin of Safety

2006

$5,570,000 Variable Cost / 6897 Ticket Sales = $808 VC per Ticket

$1553 per Ticket - $808 VC per Ticket = $745 Contribution Margin

$5,547,000 Fixed Costs / $745 CM = 7446 Tickets to Break Even

7446 Tickets