Break Even Point
…………………………..Answer preview………………….
Question One
Px = Vx + FC + Profit
Whereby
P = Price Per Unit
X = Number of Units
V = Variable Cost Per Unit
FC = Total Fixed Cost
Break Even Point is where profit is zero
Therefore
Px = Vx + FC
1) The Capital Intensive Manufacturing Method
30x = 5x + 6x + 3x + 2x + $2,508,000 + $502,000
30x = 16x + $3,010,000
14x = $3,010,000
x = 215,000 Units…………………………………….
APA
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