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    Break-Even Point

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    Amazing Products distributes a single product, a woven basket whose selling price is $8.8 and whose variable cost is $6.6 per unit. The company's monthly fixed expense is $ 6,028.

    Requirement 1:
    Break-even point in unit sales.

    Requirement 2:
    Break-even point in sales

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    Solution Preview

    Requirement 1:
    Break-even point in unit sales (Q) = Variable expenses + Fixed expenses + Profit
    $8.8Q = $6.6Q + $6,028 + $0 (Now put all Qs on one side, or move the positive 6.6 to the left side of the equal sign making it ...

    Solution Summary

    Break-Even Point is depicted.