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In: Accounting

How do you compute a break even point using thevCVP and variable costing

How do you compute a break even point using thevCVP and variable costing

Solutions

Expert Solution

Breakeven point is a situation where the company will be in a no profit no loss situation.

BEP (Units) = Total fixed cost/ Sales price per unit – variable cost per unit

So we can find the sales price from income statement and variable cost and using the formula calculate BEP.

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Hope that helps.

Feel free to comment if you need further assistance J

Breakeven point is a situation where the company will be in a no profit no loss situation.

BEP (Units) = Total fixed cost/ Sales price per unit – variable cost per unit

So we can find the sales price from income statement and variable cost and using the formula calculate BEP.

--------------------------------------------------------------------------------------------------------------------------

Hope that helps.

Feel free to comment if you need further assistance J

ekkarill92 answered 9 months ago
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