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formula for calculating break even point in absorption costing
How do I calculate the break even point in units and sales dollars using absorption costing.
Sales price $16,000 per unit Fixed cost per unit $2,500 (total fixed $7,500,000 per month) variable cost per unit = $9,800 denominator volume is 3,000 units no beginning or ending inventory Produced 3,200 units in Jan and $2,400 units in February Im getting a negative number for January, can this be correct? Thanks. |
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