[channa1984]

Chanel Limited makes and sells perfumes. The selling price of a perfume is $45.00 and the variable cost per perfume is $35.00. The Company fixed costs are $8,000,000.00.

Calculate how many perfumes the company must sell to Break Even.

[HelpinHere]

Profit per bottle (X) = Selling price (45) - Variable Cost (35)

X = Profit
X x Amount Sold (Y) = Total Profit

If: Total Profit = Total Fixed Costs, then the company broke even.

Therefore, you need to find:
X x Y = 8,000,000
8,000,000 / X = Y

Find X, solve for Y.

[morgaine300]

Or you can solve it using the break even equation, which is just fixed costs divided by unit contribution margin. Contribution margin is sales less variable. This should be in your textbook.

[HelpinHere]

Or you can solve it using the break even equation, which is just fixed costs divided by unit contribution margin. Contribution margin is sales less variable. This should be in your textbook.

Okay, let's examine that:
UCM = Revenue (sells) - Variable Cost
AKA, profit = price - cost

Fixed Costs / PROFIT = amount to break even.

Using X for profit (which is what I used in my first post) it would be 8,000,000 (which is fixed costs) divided by X. Then, substitute "ammount to break even" with Y, and you realize that you just suggested the same thing, using terms instead of examples to help the OP.

8,000,000 / X = Y