# financial management

posted by
**Taffany** on
.

I need some help I have the numbers I need but do not understand how to do break even points. The formula is PX = A + BX

where P = Unit cost or price of the service

X = Amount of service to be provided (an unknown)

A = Fixed costs

B = Variable costs

The numbers are

The years I need help with are for years 2003 and 2004 the total number of fixed costs 2003 being the first year and 2004 being the second numbers are Rent and Utilities $150,000.00 $150,000.00

Telephone $0 $24,000.00 $24,000.00 Payroll and benefits $520,069.00 $915,787.20

Supplies $171,622.77 $320,525.52 the second is the variable costs because they change from year to year so what I need help with is how many customers would I need to serve in order to break even with my costs