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Home > Business & Careers > Accounting   »   Break even point in sales turnover

 
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Old May 17, 2007, 06:42 AM
markdixon
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Break even point in sales turnover

The following figures relate to the production of a small component

Fixed cost £30,000
Variable cost per unit £15.00
Selling price £25.00

Determine the break even point in sales turnover.


Thanks. Any help would be greatly appreciated.

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Old May 17, 2007, 06:57 AM   #2  
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Pricing - Calculating Break-Even Revenue
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Old May 19, 2007, 10:33 AM   #3  
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Break even point (sales turnover) = fixed cost/contribution margin
= 30,000/(25 - 15)
= 30,000/10
= 3,000 units

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