What is the formula for finding break even point

Mathematics

2 answers:

hoa [83]3 years ago

6 0

Answer:

Fixed Costs ÷ (Price - Variable Costs) = Break-even Point in Units

^.^

- Amanda

Yanka [14]3 years ago

3 0

Answer:

Q(Price -var cost) = Fixed cost

Step-by-step explanation:

Break even point is the number of units at which there is no profit or no loss.

i.e. we have total revenue = total cost

Total cost = Fixed cost + variable cost

Total revenue = no of units x price per unit

Thus break even point is the Quantity in units Q where

Q *Price = Fixed cost + var cost per unit *Q

Or Q(Price -var cost) = Fixed cost

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