20.7k views
5 votes
Suppose that you want to start a new business. You know that the revenue is a function of the number of widgets that your new company sells and that the cost is a function of the number of widgets that your new company produces. Given this information, what method would you use to solve for the break-even point? Explain what your answer means.

User Prostynick
by
8.0k points

2 Answers

4 votes

Answer:

Explanation:

How to calculate breakeven point is a key financial analysis tool used by business owners. Once you know the fixed and variable costs for the product your business produces, or a good approximation of them, you can use that information to calculate your company's breakeven point. It's a popular tool used by small business owners to determine how much volume of their product they must sell in order to make a profit. It is also an important part of cost-volume-profit analysis.

User Khristie
by
8.3k points
6 votes
How to calculate breakeven point is a key financial analysis tool used by business owners. Once you know the fixed and variable costs for the product your business produces, or a good approximation of them, you can use that information to calculate your company's breakeven point. Itis a popular tool used by small business owners to determine how much volume of their product they must sell in order to make a profit. It is also an important part of cost-volume-profit analysis.
User Sergej Werfel
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories