BUISENESS MANAGEMENT
MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed costs Break Even = (Selling Price * Variable Cost per unit)
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Selling PriceBreak Even = ( Variable Cost per unit-Fixed costs)
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Selling Price Break Even = ( Fixed costs + Variable Cost per unit)
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Fixed costs Break Even = (Selling Price-Variable Cost per unit)
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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: -The following formula can be used to estimate a firm’s break-even point: Fixed costs / (price-variable costs) = break-even point in units.
Detailed explanation-3: -Break-even point in units = Fixed costs ÷ Contribution margin per unit. Your break-even point in units will tell you exactly how many units you need to sell to turn a profit. If you’re able to sell more units beyond this point, you’ll be making a profit.
Detailed explanation-4: -The formula for break even analysis is as follows: Break Even Quantity = Fixed Costs / (Sales Price per Unit – Variable Cost Per Unit) Where: Fixed Costs are costs that do not change with varying output (e.g., salary, rent, building machinery). Sales Price per Unit is the selling price (unit selling price) per unit.