Question:

Break even point? when. selling price and variable cost is changing every year?

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hi

Break even point? [ when selling price , variable cost and revenue per year is changing every year] what is the formula in that case....

b = fixed costs

____________________________________

sales revenue per unit - variable cost per unit

with this formula ..i can't calculate......

what to do.......

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1 ANSWERS


  1. Limitations this formula

    - only a supply side

    - FC are constant

    - average variable costs are constant per unit

    - the quantity of goods produced is equal to the quantity of goods sold

    - In multi-product companies, it assumes that the relative proportions of each product sold and produced are constant

    But this formula popular and basic

    Real world external factors cannot control or cannot 100% control //// how to use

    - Setup Price / How many units for sell for archive profits target

    - manage all cost

    - every enterprise  have own knowledge learning to reserve or adjust something.

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