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Paul

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Breakeven

Hello,

Can you please clarify how you came up with the breakeven number?

Thanks

Hello,

Can you please clarify how you came up with the breakeven number?

Thanks

2 answers

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Hi,

breakeven (sales) = Sales it takes to make Profit = 0 (all cost included)

therefore

(Unit Price - Unit Variable cost) X (Breakeven Quantity) = Other (fixed) costs

Therefore

Breakeven quantity = Other fixed costs / (Unit price - unit variable cost)

hope it helps.

Paul

Hi,

breakeven (sales) = Sales it takes to make Profit = 0 (all cost included)

therefore

(Unit Price - Unit Variable cost) X (Breakeven Quantity) = Other (fixed) costs

Therefore

Breakeven quantity = Other fixed costs / (Unit price - unit variable cost)

hope it helps.

Paul

Tom Ford is well-known for male fashion; therefore, the number should be low.

Tom Ford is well-known for male fashion; therefore, the number should be low.