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in a break even analysis question you are only given units produced, variable cost per unit, and fixed costs. how do you solve?

2007-11-02 21:19:09 · 2 answers · asked by Perry C 1 in Business & Finance Other - Business & Finance

ONLY given units produced, variable cost, and fixed cost. every problem i studied had a selling cost but this one doesn't, any answers

2007-11-02 23:26:45 · update #1

2 answers

It's a linear equation (y = mx + b); m is your variable cost and b is your fixed cost.

2007-11-02 21:35:36 · answer #1 · answered by Scott K 7 · 0 0

You need a selling price per unit. Once that is in place, you can solve it. Basically the difference between the selling price and the variable cost is profit and should equal the fixed costs for the business to break even.

2007-11-03 04:24:11 · answer #2 · answered by Swamy 7 · 0 1

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