determining break even point

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Jun 25, 2007, 04:01 PM

gonzo321

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Join Date: Jun 2007

Posts: 1

determining break even point

Is it possible to determine a break even point if you are given a selling price per unit and a variable cost per unit that is larger than the selling price. I know the total fixed costs and am trying to calculate the units to break even. I have no additional information. Selling price is $25 per unit, VC are $40 per unit and total fc of 312,000. Thank you

Answers

Jun 25, 2007, 06:02 PM	#2

CaptainForest Finance & Accounting Expert Join Date: Nov 2005 Location: Canada Posts: 3,672	There will never be a Break Even point. If your VC is greater than your selling price, one can never break even. Since for every unit you sell, you are spending even more money on costs.

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