how do you calculate break-even output with;
fixed costs = £300,000
Total revenue = £150,000
variable costs = £90,000
output = 2500 units
would be a big help if someone could tell me! thank you!
Total revenue, with 2500 sales, is 150,000. Ergo, price per unit is 60.
Variable costs per unit is 90,000/2500 = 36.
So break-even is TR=TC which is 60*X = 300,000+36*X.
Solve for X