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    Break Even Analysis

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    Finance Example - Break Even Analysis.
    The break even point for a business is given by the formula:
    B = F/P-V

    B = units sold to breakeven point
    F = fixed costs
    P = price per unit
    V = variable costs

    Suppose EducateComp knows its fixed costs are $100,000, its variable costs are
    $500 per copy of AlgeComp, and they must to sell 15000 copies of AlgeComp to
    break even the first year. What is the minimum price per unit they should charge?

    B = F /P-V

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    Solution Summary

    A Break Even Analysis is performed. The response received a rating of "5" from the student who posted the question.