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markdixon
May 17, 2007, 06:42 AM
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.
:D

Thanks. Any help would be greatly appreciated.
NeedKarma
May 17, 2007, 06:57 AM
Pricing - Calculating Break-Even Revenue (http://www.smallbusinessnotes.com/operating/marketing/pricing/breakevenrevenue.html)
bunnyKutty
May 19, 2007, 10:33 AM
Break even point (sales turnover) = fixed cost/contribution margin
= 30,000/(25 - 15)
= 30,000/10
= 3,000 units