Prepare a detailed break-even analysis scenario for the company

The Break-even analysis equation is (fixed cost)/ (selling price -variable price)
Altius had three versions of golf balls
a) Victor TX (Premium)
b) Victor (Mid-Range)
c) Elevate (Economy)
The profit analysis of each models is given below
Victor TX Victor Elevate
Selling Price 48 39 27
Retailer Margin% 0.15 0.15 0.2
Retail Margin 7.2 5.85 5.4
Gross margin % 0.7 0.7 0.641203704
Profit 28.56 23.205 13.85
Actual cost 12.24 9.945 7.75

Here we can see that the gross margin % of Elevate is 64%

Break even analysis of each models are provided below
a) Victor TX
(fixed cost + variable cost)/ Units sold = total cost per unit
Units of Victor TX sold in 2012 are 4.319 million (70% of 6.17 million)
Total cost per unit = 12.24$
fixed cost + variable cost including advertisement cost= 52.3 million dollars
Reducing the advertisement cost of 24.5 million (70% of 35 million)
fixed cost + variable cost is 27.8 million
b) Victor
Units of Victor sold in 2012 are 1.86 million (30% of 6.17 million)
Total cost per unit = 9.945 $
fixed cost + variable cost including advertisement cost = 18.5 million dollars
Reducing the advertisement cost of 1.05 million (30% of 35 million)
fixed cost + variable cost is 17.45 million
c) Elevate
 Total units sold in 2012= 17.6 million units
Total units sold in off course stores = 9.52 million (54.1% of 17.6 million)
We are assuming that Elevate would cover 30% of market, this means that Elevate would sell
in 2.85 million units in a year
But golf balls are sold in pack of 12, hence the 0.2375 (285/12) million packs would be sold
Total revenue from selling Elevate is =(0.2375*27) =6.4 million
Total cost of Elevate = ( 0.2375*7.75) = 1.84 million
Break even = (1.84/6.4) = 0.28years
This is approximately 4 moths