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-   -   Break-Even point (https://www.askmehelpdesk.com/showthread.php?t=86997)

  • Apr 27, 2007, 04:42 PM
    answers4jen
    Break-Even point
    How much will profits increase for every unit sold over the break-even point?
  • Apr 27, 2007, 05:42 PM
    tickle
    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.
  • Apr 27, 2007, 05:53 PM
    answers4jen
    Well it was just a general question from my homework. That was the exact question as it was exact. Thanks for trying though.
  • Apr 27, 2007, 06:07 PM
    davecoach
    Quote:

    Originally Posted by answers4jen
    How much will profits increase for every unit sold over the break-even point?

    I think it would help to answer that if we knew what the prior question is.
  • Apr 27, 2007, 06:53 PM
    CaptainForest
    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.
  • May 1, 2007, 06:18 AM
    Lady CMA
    Quote:

    Originally Posted by answers4jen
    How much will profits increase for every unit sold over the break-even point?

    The sales price per unit minus the variable cost per unit
  • Aug 18, 2007, 03:26 PM
    grr82bntx
    100%

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