menu
bartleby
search
close search
Hit Return to see all results

How do you calculate the break even point?

Question

How do you calculate the break even point?

 

check_circleAnswer
Step 1

Provide the means to compute the break even point:

 

Break-Even Point: The break-even point refers to the point of sales at which the firm neither earns a profit nor suffer...

The formula to compute the break-even units:
Fixed cost
Break-even in Units =Contribution Margin
(or)
Fixed cost
Break-even in Units= Sales -Varable Cost)
help_outline

Image Transcriptionclose

The formula to compute the break-even units: Fixed cost Break-even in Units =Contribution Margin (or) Fixed cost Break-even in Units= Sales -Varable Cost)

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: exercise 12-7 Shown below are comparative balance sheets for Sandhill Company. Sandhill Company...

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for ...

question_answer

Q: I had previously asked this question and there was no solution attached to it. I should be credited ...

A: Break-even sales: Break-even sales is that level of sales at which the firm is just covering its exp...

question_answer

Q: They are going to start a manufacturing company and need help deciding what entity type to choose to...

A: The different types of business entities prevent in an economy are(a)    Sole Proprietorship(b)    P...

question_answer

Q: The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inve...

A: a. Compute the amount of net sales: 

question_answer

Q: In which of the three activity categories of a statement of cash flows would each of the following i...

A: Cash flow statements are the statements that determines the inflow and outflow of cash from three ma...

question_answer

Q: classify 3 activities of accounting

A: Click to see the answer

question_answer

Q: If I have a machine that I purchased for $50,000. I'be recorded depreciation of $28,000. I sell the ...

A: Book value of an asset is the Purchase price of the asset less accumulated depreciation. when the ma...

question_answer

Q: What is the journal entry for: ABC Company used up $200 worth of supplies?

A: Supplies: Supplies in a business are those items consumed for general purposes and have a shorter li...

question_answer

Q: Identy the type(s) of gain or loss that would be recognized on the following asset sales as capital,...

A: Capital gain relates to profits on the sale of investments or real estateSec 1231 gains is computed ...

Sorry about that. What wasn’t helpful?