If the Total Fixed cost is 75,000 and Variable cost=10 what should be the selling price if break even point is brought down to 5,000?
Formula is BEP=Total Fixed Cost/Selling price per unit --Variable cost per unit
BEP =Total Fixed Cost/Contribution per unit
class 12 Marketing Management plz answer its urgent
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How to Calculate the Break-Even Point
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To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.
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What Is the Break-Even Point?
What Is the Formula for the Break Even Point?
Break-Even Point Examples
What Is the Break-Even Point?
The break-even point is the point where a company’s revenues equals its costs. The calculation for the break-even point can be done one of two ways; one is to determine the amount of units that need to be sold, or the second is the amount of sales, in dollars, that need to happen.
The break-even point allows a company to know when it, or one of its products, will start to be profitable. If a business’s revenue is below the break-even point, then the company is operating at a loss. If it’s above, then it’s operating at a profit.
How to Calculate Break Even Point in Units
H2= “How to Calculate Break Even Point in Units”