# financial management

posted by .

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

## Similar Questions

The fixed cost for a firm drop by 25%. Prior to this breakthrough fixed cost were \$100,000 and unit contribution maegin was and remains at 5.00. The new amount of break-even units will be: Thank You Very Much! ps: I got two answer …
2. ### Accounting

A manufacturing company has to decide between their current process which has a variable cost of \$10/unit and investing in new equipment which will reduce the variable cost to \$5/unit. The new equipment will cost \$100,000. Use a break-even …
3. ### accounting

Your CEO has limited knowledge of management accounting but of course, is vitally interested in forecasting profitability under different scenarios. He asked you, the management accountant, to begin your report by answering a few basic …
4. ### math

Suppose the cost function associated with a product is C(x) = cx + F dollars and the revenue function is R(x) = sx, where c denotes the unit cost of production, s the unit selling price, F the fixed cost incurred by the firm, and x …
5. ### Break-Even Analysis

Given: Jay Letterman has just (year: 2012) become product manager for Avenir. Avenir is a consumer product with a unit retail price of \$1.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Avenir and its …
6. ### College Algebra

A company is planning to produce and sell a new line of tvs. The fixed cost for the company is \$400,440 and each tv cost \$845 to produce. If they project the sales price of 1200, how many tvs will need to be sold to break even?
7. ### Accounting

Currently, the unit selling price of a product is \$110, the unit variable cost is \$80, and the total fixed costs are \$345,000. A proposal is being evaluated to increase the unit selling price to \$120. a. Compute the current break-even …
8. ### accounting

using the break-even equations to solve for price and variable cost per unit andromeda company's break-even point is 2,400 units. variable cost per unit is \$42; total costs are 67,200 per year. what price does andromeda charge?
9. ### math

Your business provides a service to local residents. Your fixed costs are \$2,000 per month, and you expect 40 customers per month. The variable cost associated with each service is \$35. 1. Using cost-based pricing and a markup of 20%, …
10. ### Maths;function i need help

(1):Given the cost function c(x)=10+2x and the revenue functio r(x)=3x,find break even quantity and the price (2):if the marginal cost of producing x unit is given by c'(x)=0.4x^3+2x and the fixed cost is p4000.00 find the cost function …

More Similar Questions