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Finding Breakeven Point (BEP)

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A company fixed operating costs are $500,000, its variable costs are $3.00 per unit, and the product's sales price is $4.00. What is the company's breakeven point, that is, at what unit sales volume would its income equal its costs?

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Solution Summary

Solution describes the methodology to determine breakeven point of a company.

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Solution:

Let x be breakeven points in units.
Total cost at this point =Fixed costs +variable ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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