How much will profits increase for every unit sold over the break-even point?
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How much will profits increase for every unit sold over the break-even point?
I don't think there is a break even point for just anything, per se, it isn't a set break even point. So what commodity is this referring too. I am not an expert on this but your question intrigued me enough to ask questions.
Well it was just a general question from my homework. That was the exact question as it was exact. Thanks for trying though.
I think it would help to answer that if we knew what the prior question is.Quote:
Originally Posted by answers4jen
After the BE is reached, Fixed Costs have already been attributed.
Therefore the only cost left is the Variable Costs. So the profit is equal to the contribution margin (Sales- VC)
Therefore, for each additional unit sold above the break even point, the profit will be equal to the contribution margin.
The sales price per unit minus the variable cost per unitQuote:
Originally Posted by answers4jen
100%
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