When expenses and revenues are equal, this is known as the “break-even point” or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relationship to revenues is necessary.

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Part 1: Calculate the break-even point for the toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points.
Part 2: Recommend which option, based on the scenarios for the company, that you would select using a word processing program such as Word. Support your conclusion with both a written analysis and quantitative data. will typically be 3–4 paragraphs in length as a general expectation/estimate for each bullet point.