It would be interesting to see how gas stations and convenience store have the price of gasoline calculated into their break-even point. Explain© BrainMass Inc. brainmass.com March 4, 2021, 9:16 pm ad1c9bdddf
Break even analysis is used by calculating the contribution margin (gross profit) of a product(s) and/or services and determining how many units must be sold at an average contribution margin per unit to cover total fixed costs. The difficulty in applying this process to a fueling station is that the price of fuel fluctuates as the commodities ...
The solution explains the concept of break even analysis as it pertains to a gas station operation.