Asked by
Megan Bush
on Oct 23, 2024Verified
To calculate the breakeven point, the equation (SP-VC)X - FC = 0 where SP = selling price per unit, VC = variable cost per unit, FC = fixed costs and X = the units at breakeven, can be used.
Breakeven Equation
A calculation representing the point at which total costs equal total revenue, indicating that a business neither makes profit nor incurs loss.
Selling Price
The amount at which a product or service is sold to customers, determined by factors like cost, demand, and market competition.
Variable Cost
Costs that change in proportion to changes in the level of production or sales volume.
- Compute the equilibrium point in terms of units and currency amount.
Verified Answer
LW
Learning Objectives
- Compute the equilibrium point in terms of units and currency amount.