15-11 Break-Even Point
The following fields appear on the
Field | Description |
PRC | Selling price per unit |
VCU | Variable cost per unit |
FC | Fixed costs |
PRF | Amount of profit realized |
QBE | Number of units to be sold |
SBE | Amount that must be obtained from sales to break even |
r% | Proportion of sales amount retained as a profit (as a percent) |
Financial Application Default Setup for Examples
You can use the [Format] tab to change the following settings. You can also change these settings by tapping the status bar.
Profit Amount/Ratio: Amount (PRF)
Scenario
Your company is producing items with a unit variable cost ([VCU]) of $50/unit and fixed costs ([FC]) of $100,000. The items will be sold for a sales price ([PRC]) of $100/unit.
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