Selling Price = $8, variable cost per unit= $5, fixed costs= 48,000
Break Even Point in units=
Break Even Point in dollars=
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Selling Price = $8, variable cost per unit= $5, fixed costs= 48,000
Break Even Point in units=
Break Even Point in dollars=
When the revenue equals all costs, it breaks even.
You can use the formular in your managerial accounting book, but you can also use simple math:
$8 X=$5X+$48,000, --->X=16,000 units, check back to see if it is correct: $8*16,000=$5*16,000+$48,000
Amount from either side of the equation is the break even sales dollars.
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