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Home > Business & Careers > Accounting   »   Break-Even point

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Old Apr 27, 2007, 03:42 PM
answers4jen
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Break-Even point
How much will profits increase for every unit sold over the break-even point?

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Old Apr 27, 2007, 04:42 PM   #2  
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I dont think there is a break even point for just anything, per se, it isnt a set break even point. So what commodity is this referring too. I am not an expert on this but your question intrigued me enough to ask questions.
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Old Apr 27, 2007, 04:53 PM   #3  
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Well it was just a general question from my homework. That was the exact question as it was exact. Thanks for trying though.
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Old Apr 27, 2007, 05:07 PM   #4  
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Quote:
Originally Posted by answers4jen
How much will profits increase for every unit sold over the break-even point?
I think it would help to answer that if we knew what the prior question is.
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Old Apr 27, 2007, 05:53 PM   #5  
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After the BE is reached, Fixed Costs have already been attributed.

Therefore the only cost left is the Variable Costs. So the profit is equal to the contribution margin (Sales- VC)

Therefore, for each additional unit sold above the break even point, the profit will be equal to the contribution margin.

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bhet agrees: yap. nice one.
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Old May 1, 2007, 05:18 AM   #6  
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Quote:
Originally Posted by answers4jen
How much will profits increase for every unit sold over the break-even point?
The sales price per unit minus the variable cost per unit
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Old Aug 18, 2007, 02:26 PM   #7  
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100%
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