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    MARENGO1's Avatar
    MARENGO1 Posts: 2, Reputation: 1
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    #1

    Aug 26, 2009, 03:45 PM
    Break even analysis
    Break even analysis
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Aug 27, 2009, 06:20 AM

    Break even analysis is a special study
    that determines the Sales Amount that is the
    Sales per piece times the Number of pieces
    will equate exactly to the total of the Fixed Costs plus the Cost per piece times the number of pieces.

    SALES = Number of pieces TIMES the price.

    TOTAL COST = Fixed Costs PLUS Variable Cost per piece times the number of pieces.

    Example TOTAL SALES = 1000 pieces times $100 . This would be $100,000.

    Total Fixed Cost = $20,000
    Total Variable = 1000 pieces times $80.= $80,000.
    Total Costs = $100,000

    Break Even = Total Sales = Total Cost.
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