A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

Find a linear cost function in
Break-EvenAnalysis The cost function for flavored coffee at an upscale coffeehouse is given in dollars C(x) = 3x 1 + 160,by where x is in pounds. The coffee sells for $7 per pound.
a. Find the break-even quantity.
b. What will the revenue be at that point?

What is a break-even point? If an organization's fixed costs increase, what happens to the break-even point? How can the break-even point be lowered? Why is the break-evenanalysis an important tool for management? When evaluating a company, how might this information be used?

So if I sell wigs, which have a huge profit margin of 70%, and I sell cups which only have a thin 10% margin, is the breakevenanalysis effective or are these product margins too far apart? Please explain.

Finance Example - BreakEvenAnalysis.
The breakeven 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

When planning the new baseball stadium for Washington DC, you are asked to find the break-even point for the number of luxury skyboxes built. The boxes are for sale to corporations and wealthy individuals for $100,000 each. The fixed cost for the entire upper deck is is $1,500,000 with a variable cost of $50,000 each per box.

(a) Break-evenanalysis is of limited use to management because a company cannot survive by just breaking even. Do you agree? Explain.
(b) Total fixed costs are $22,000 for Forrest Inc. It has a contribution margin per unit of $15, and a contribution margin ratio of 25%. Compute the break-even sales in dollars.

Power Notebooks plans to manufacture a new line of notebook computers. The screens cost $100 each. To set up assembly process required to produce screens in house would cost $100,000. Company could produce screens for $75. Number of notebooks that eventually will be produced (Q) is unknown at this point.
a) Set up a spreads

What happens at a company's break-even point? How can you compute the break-even point for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?