# Break Even Analysis

Finance Example - Break Even Analysis.

The break even point for a business is given by the formula:

B = F/P-V

where:

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.

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