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# Operating below the break-even point cannot raise prices

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If companies that are operating below the break-even point cannot raise prices, what must they do to break even? (400 words)

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Dear studcent,

If companies that are operating below the break-even point cannot raise prices, what must they do to break even? (400 words)
Breakeven point of sale is the sale when the company earns no profit and no loss. At the breakeven point, sale is equal to total cost. Here, total cost is variable cost and fixed costs. At the breakeven point, contribution is equivalent to fixed costs. Therefore, formula for computing Breakeven point in units= fixed costs for the period/contribution per unit.
Contribution per unit= selling price per unit-variable cost per unit.
Breakeven point in dollar sales= fixed cost for the period/ contribution margin ...

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The expert examines operating below the break-even point cannot raise prices.

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