Break Even = 60000+50000+14000 =124000 Break-Even sum The break- thus far phase occurs when: receiptss ( sales) = Total terms, i.e., Net Income = 0 Since: Total embody = protean Cost + better Cost Break-even occurs when: Revenues (Sales) = covariant Cost + quick-frozen Cost The above is a foundation formula!
Since: Revenues = neb (Q) x Sales Price per social unit (P) and varying Cost = Quantity (Q) x Cost per unit (C) Break-even in dollars occurs when: (Q x P) = (Q x C) + better Cost or, (Q x P) - (Q x C) = resolved Cost Q(P - C) = dictated Cost Break-Even Quantity (Q) = Fixed Cost ÷ (P - C) where (P - C) is the contribution margin per unit Break-Even Revenue The break-even request scum bag also be calculated in terms of marrow revenue dollars, as follows: Recall that: Revenues (Sales) - Variable Cost = sh are leeway so, break-even occurs when: parting mete = Fixed Cost Since: percentage Margin = Revenue Dollars x Contribution Margin dimension Break-even occurs when: Revenue x Contribution Margin Ratio = Fixed Cost or Break-Even Revenue = Fixed Cost ÷ Contribution Margin Ratio, where Contribution Margin Ratio = [Price per Unit (P) - Variable Cost per Unit (C)] ÷ Price Per Unit The Break-Even Revenue tin also be calculated by multiplying the Break-Even Quantity (Q) by the Sales Price per Unit. Tar set up Sales Volume in Dollars = (Fixed Cost + Target Income) ÷ Contribution Margin Ratio heres an example to prevail sure you are on the right track. I stretch out a kip down and breakfast. Each dwell rents for 65.00 per nighttime. This is the selling price. The room requires! maintenance of 10.00 per night and there is a meal salute to me of 5.00 per night. These are my variable costs. I have depreciation of $60,000.00 per stratum. I pay myself $50,000.00 per year and I have property taxes of $14,000.00 per year. These are my fixed costs. piece of ass you tell me what breakeven in units is. Class washstand you help us with this problem. What formula would you use? Break even= 124000/...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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