Moreno Corp. produces products that it sells for $7 each. Variable costs per unit are $4, and annual fixed costs are $81,000.
Use the equation method to determine the break-even point in units and dollars.© BrainMass Inc. brainmass.com June 3, 2020, 6:47 pm ad1c9bdddf
Let's call Q to the quantity sold in units. The profit function would be:
Profit = 7Q - 4Q - 81,000 = 3Q - 81000
[revenue (7Q) ...
Accounting variable cost methods are discussed. The expert uses the equation methods to determine the break-even in units and dollars.