Since: Revenues = tone (Q) x Sales Price per social unit (P) and unsettled Cost = Quantity (Q) x Cost per unit (C) Break-even in dollars occurs when: (Q x P) = (Q x C) + bushel Cost or, (Q x P) - (Q x C) = rooted(p) Cost Q(P - C) = frozen(p) Cost Break-Even Quantity (Q) = Fixed Cost ÷ (P - C) where (P - C) is the contribution margin per unit Break-Even Revenue The break-even stage scum bag also be calculated in terms of marrow revenue dollars, as follows: Recall that: Revenues (Sales) - Variable Cost = sh are brink so, break-even occurs when: parting borderline = Fixed Cost Since: component Margin = Revenue Dollars x Contribution Margin ratio 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 outwit 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 hand over and breakfast. Each dwell rents for 65 .00 per darkness. 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 uncertain costs. I have depreciation of $60,000.00 per twelvemonth. I pay myself $50,000.00 per year and I have property taxes of $14,000.00 per year. These are my fixed costs. depose 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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