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Which of the following is the mathematical model for deriving the break-even volume?

A. Q = (C - VC) + F
B. Q = F / (C - V)
C. Q = (V + C) / F
D. Q= F / (VC - C)

User Enlyte
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The mathematical model for deriving the break-even volume is represented by Q = F / (C - V), where Q is the break-even volume, F is the fixed costs, C is the total costs, and V is the variable costs per unit.

The mathematical model for deriving the break-even volume is represented by option B: Q = F / (C - V).

To understand this model, we need to know the definitions of the variables:

  • Q: Break-even volume
  • F: Fixed costs
  • C: Total costs
  • V: Variable costs per unit

The break-even volume can be calculated by dividing the fixed costs (F) by the difference between the total costs (C) and the variable costs per unit (V).

User Sjoerd K
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