ENTREPRENEURSHIP

Detailed explanation-1: -To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

Detailed explanation-2: -Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit) Break-Even Point (sales dollars) = Fixed Costs ÷ Contribution Margin. Contribution Margin = Price of Product – Variable Costs.

Detailed explanation-3: -Variable Costs Percent per Unit = Total Variable Costs / (Total Variable + Total Fixed Costs) Total Fixed Costs Per Unit = Total Fixed Costs / Total Number of Units. Break-Even Price = 1 / ((1-Total Variable Costs Percent per Unit)*(Total Fixed Costs per Unit))

Detailed explanation-4: -Required number of units sold: Profit = Revenues – Variable Costs – Fixed Costs. $20 = (Units Sold X $5) – (Units Sold X $3) – $30. Required sales dollar amount. Profit $ = sales $ – Variable Costs $ – Fixed Costs $ and.