Asked by phill
how do you calculate break-even output with;
fixed costs = £300,000
Total revenue = £150,000
variable costs = £90,000
output = 2500 units
would be a big help if someone could tell me! thank you!
fixed costs = £300,000
Total revenue = £150,000
variable costs = £90,000
output = 2500 units
would be a big help if someone could tell me! thank you!
Answers
Answered by
economyst
Total revenue, with 2500 sales, is 150,000. Ergo, price per unit is 60.
Variable costs per unit is 90,000/2500 = 36.
So break-even is TR=TC which is 60*X = 300,000+36*X.
Solve for X
Variable costs per unit is 90,000/2500 = 36.
So break-even is TR=TC which is 60*X = 300,000+36*X.
Solve for X
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