How to calculate break even revenue when variable cost and selling price is changing every year?

Question

HI

How to calculate break even revenue when variable cost and selling price is changing every year? what is the formula to calculate break even revenue under such circumstances?

Answer 1

Use This formula

Profit Volume Ratio = Change in Contribution / Change in sales * 100

Break Even  = Fixed Cost / PV Ratio

Answer 2

well i know what break even revenue means .but i dont know the formula..sorry !

Answer 3

Obviously a break even calculation only applies to the point in time the numbers are for - it changes continuously, but most likely not very much very fast.

let n be the number of items sold, calculate by solving the equation

selling price times n = variable cost times n, plus fixed costs

is breakeven number of items sold - revenue for that would be selling price times n