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  • Apr 22, 2009, 07:58 AM
    carloscamelo
    Break Even for a Public Company
    Hi,

    I am a bit confused as to what formula to use to find BEP for this question?

    DQ is about the sales (revenues) for break-even without entering into units of production. Break even refers to the condition where profit = 0 (no profit and no loss).

    I understand where profit = 0 (no profit and no loss).

    But I know this formula :BEP = TFC / (SUP - VCUP)


    Since my professor is asking only for revenues? What exactly is it that I need to gather from that public company and what exact formula do I use.

    tks
    CEC
  • Apr 22, 2009, 06:51 PM
    morgaine300

    Don't know what DQ stands for, but break-even in revenues is break-even in unit times the unit sales price.

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