Calculate breakeven point in units and dollars.
Calculation should include dividing the total cost and expenses by the selling price to determine point of profitability, taking into account the following:
- Fixed costs
- Variable costs
- Total costs
- Selling price
- Total revenue
Process/Skill Questions:
- Why is it important to determine the breakeven point?
- How can the breakeven point of a product be determined?
- What are the differences between variable and fixed costs?