Break-even point, The operating level at which the total sales revenue equals the total

Break-even point

The operating level at which the total sales revenue equals the total cost. Total sale revenue is equal to the price per unit times the number of units sold. Total cost equals total variable cost, the number of units sold in time the variable cost per unit and the total fixed cost. Break-even can be calculated either in terms of units sold or the sales revenue. To find the break- even in units, divides fixed costs by the contribution margin per unit. To find the break-even sale revenue, divide the fixed cost by the contribution margin ratio.

View Complete Question

Related Questions in Managerial Accounting

Q : Define Support Costs Support Costs :

Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.

Q : Effect of illegal obligations on cost

Normal 0 false false

Q : Classification of costs with examples

describe how costs can be classified giving examples in each classification. explain how the different cost classifications can assist management in decision making

Q : Illustrate the effect of tax on the

The U.S. market for rice is illustrated below. The world pric

Q : Define Unit Cost Unit Cost : The cost

Unit Cost: The cost of a chosen unit of a good or service. Illustrations comprise dollar cost perton, machine hour, labor hour, and department hour.

Q : Problem related to budget surplus Refer

Refer to the below data. A budget surplus occurred in year: A) 2. B) 3. C) 4. D) 6. Provide solution of th

Q : Budget surplus Select the right answer

Select the right answer of the question. If the economy has a standardized budget surplus, it means that: A) the public sector is exerting an expansionary impact on the economy. B) tax revenues would exceed government expenditures if full employment were achieved. C)

Discover Q & A

Leading Solution Library

Avail More Than 1457081 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1957795
Asked

3,689

Active Tutors

1457081

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment