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Accounting: Determining the break-even point.

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Determine the company's break-even point in units. Obtained the following information from the company's financial statements for the year just ended. In addition, you found out from production manager that the company produced 40 million units in that year. What will you determine the break-even point to be?

Sales $20,000,000
Variable costs 16,000,000
Revenue before fixed costs $ 4,000,000
Fixed costs 2,400,000
EBIT $1,600,000

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The problem deals with estimating the break-even point from provided information.

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BREAK-EVEN POINT

Obtained the following information from the company's financial statements for the year just ended. In ...

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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