ECONOMICS

Detailed explanation-1: -Therefore, the concept of break-even point is as follows: Profit when Revenue > Total Variable Cost + Total Fixed Cost. Break-even point when Revenue = Total Variable Cost + Total Fixed Cost. Loss when Revenue < Total Variable Cost + Total Fixed Cost.

Detailed explanation-2: -Use the following calculations to find where your profits start. To calculate your break-even (dollar value) before net profit: Break-even ($) = overhead expenses ÷ (1 − (COGS ÷ total sales))

Detailed explanation-3: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)

Detailed explanation-4: -On a breakeven diagram, breakeven is shown by the intersection where Total Revenue is equal to Total Costs. The formula for calculating the breakeven number of units is: The selling price per unit minus variable cost per unit is also known as “contribution per unit”.

Detailed explanation-5: -This type of analysis involves a calculation of the break-even point (BEP). The break-even point is calculated by dividing the total fixed costs of production by the price per individual unit less the variable costs of production. Fixed costs are costs that remain the same regardless of how many units are sold.