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Break-even Analysis

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How to compute the break-even points in units, and how to illustrate in dollars for break-even achievement on a table with sales, fixed costs, total variable costs and net profit (loss).

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The solution explains how to carry out a break-even analysis.

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For breakeven the total revenue is equal to the total costs ( fixed plus variable). Suppose the quantity sold is Q, Price per Units is P. Variable Cost per Unit is V and the total fixed costs are F. For breakeven we get
PXQ = total Revenues
QXV= total ...

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