Can someone help me understand how this case calculated breakeven (BE)? How is this derived : highest price the company is willing to pay for the dispenser (the breakeven point)?
Maximum price at the breakeven point:
Costs of using new dispensers = Costs of using old dispensers.
I ususally use the formule BE = Total fixed costs / (price per unit-variable costs per unit) but often this information is not given and you need to derive BE by other means.