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!

1 answer

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
Similar Questions
    1. answers icon 2 answers
  1. How does a firm calculate marginal cost? (1 point)• By adding up its variable costs and fixed costs. By subtracting it total
    1. answers icon 1 answer
  2. How does a firm calculate marginal cost?a. By subtracting it total cost from total revenue b. By adding up its variable costs
    1. answers icon 1 answer
  3. The demand for item A isP=40 -3.5Q The production of A entails the following average variable costs: AVC=1.5Q - 35 Fixed Costs
    1. answers icon 0 answers
more similar questions