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    Kumvera's Avatar
    Kumvera Posts: 1, Reputation: 1
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    #1

    Oct 17, 2009, 03:46 AM
    Break even point
    How can find a break even point in monetary value(dollars), units and percentage if I am given this question; Normal plant capacity 200,000 units
    Fixed cost $120,000.00
    variable costs $1.35/unit
    Selling price $2.25/unit
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Oct 17, 2009, 04:25 AM
    Quote Originally Posted by Kumvera View Post
    How can find a break even point in monetary value(dollars), units and percentage if iam given this question; Normal plant capacity 200,000 units
    Fixed cost $120,000.00
    variable costs $1.35/unit
    Selling price $2.25/unit
    Yes I can find the answer, but I am afraid I can not solve it for you. I can, however, guide you as to how to do it.

    Break even point (units): Fixed costs/Contribution per unit
    Break even Sales Value: Break even units x sales price
    Break even percentage: Break even units/actual or budgeted units
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