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-   -   Break even point (https://www.askmehelpdesk.com/showthread.php?t=180066)

  • Feb 3, 2008, 06:58 PM
    ajtrack84
    Break even point
    Selling Price = $8, variable cost per unit= $5, fixed costs= 48,000

    Break Even Point in units=

    Break Even Point in dollars=
  • Feb 3, 2008, 11:03 PM
    MaggieMouse
    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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