Question:

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

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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?

thank you all

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  1. You have a formula

    where n is number of units

    VC is variable cost per unit

    FC is fixed cost

    SP is selling price per unit

    so break even is when

    n(VC)+FC=n(SP)

    To solve it you need to know 3 of the 4 unknowns! (FC could = 0)

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