Finding Break-even point.
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I know the formula, but I don't understand how you get the value of x or p.
PX = A + BX
where P = Unit cost or price of the service
X = Amount of service to be provided (an unknown)
A = Fixed costs
B = Variable costs
Break-even point = ?
A= 58,000
B= 1,317,273
PX = 58,000 + 1,317,273 (x)
I got the figures of A & B by adding the 3 year budget, I also added the totals together and divided by 36 months and got 38,202 as the monthly cost average. Would you use 38,202 as the price of service I don't know but I am lost at this point. Please help can the break even point be found with out the price of services and amount of service to be provided.
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A step-by-step detailed solution is provided that finds the break-even point.
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Solution:
For finding the break-point point, put
Total revenue = total ...
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