ECONOMICS

Detailed explanation-1: -Breakeven Sale Price = Total Fixed Cost + Variable Cost per Unit. Volume of Production. First, categorize fixed and variable costs. The total fixed costs are costs that do not change with the production level (number of production units). Variable costs, on the other hand, always change with production level.

Detailed explanation-2: -Definition. Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Variable cost is referred to as the type of cost that will show variations as per the changes in the levels of production. Nature of cost.

Detailed explanation-3: -Breakeven sales volume is the amount of your product that you will need to produce and sell to cover total costs of production.