Concept explainers
a)
To determine: The break-even point in dollars per month.
Introduction:
Break-even point (BEP):
The break-even point is measured in units or in sales term to identify the point in a business which is required to cover with the total costs. The total profit at break-even point is 0.
b)
To determine: The break-even units per day if it is open for 30 days a month.
Introduction:
Break-even point (BEP):
The break-even point is measured in units or in sales term to identify the point in a business which is required to cover with the total costs. The total profit at break-even point is 0.
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