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Breakeven Point = Total Fixed Costs / (Unit Price – Unit Variable Cost) or BEP = F/(P-V) In our example, the BEP = Total
Posted: Sun Jun 05, 2022 9:13 pm
by answerhappygod
- Breakeven Point Total Fixed Costs Unit Price Unit Variable Cost Or Bep F P V In Our Example The Bep Total 1 (47.29 KiB) Viewed 57 times
Breakeven Point = Total Fixed Costs / (Unit Price – Unit Variable Cost) or BEP = F/(P-V) In our example, the BEP = Total Fixed Costs/ (Average Order Price - Variable Cost per Order). Using this formula, what is the breakeven point? In other words, how many orders would need to be sold before the business starts making a profit given the current price and cost structure? Here's the information you need to do the bistro's BEP analysis: Current Orders per Month 750 Average Order Price $11.00 Variable Cost per Order $5.00 Rent per Month $2,000.00 Utilities per Month $400.00 Labor per Month $3,000.00 Calculate the BEP using the numbers and formulas above. Hint: total fixed costs in this case are the sum of rent utilities and labor TABLE OF CONTENTS