financial management
posted by Taffany .
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
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