Breakeven Point - What is breakeven point formula?

Q: What is breakeven point formula?

In accounting, the break-even point formula is determined by dividing the total fixed costs associated with production by the revenue per individual unit minus the variable costs per unit. In this case, fixed costs refer to those which do not change depending upon the number of units sold.

Answer

The formula for calculating the break-even point in accounting is as follows: total fixed expenses divided by revenue per unit minus variable costs per unit. In this context, "fixed costs" are those that remain constant regardless of sales volume.

Breakeven Point - What is breakeven point formula?

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