Break+even+point

Acadimic writing It's the point when there is no profit and no loss.

The total cost consist of fixed cost which deosn't depend on quantity,and variable cost.The revenue,it's the Sales_total Cost. Sales is the all sales of the company.and total cost is the whole cost which consist of fixed cost and variable cost.Fixed cost like: cost of land and machines,variable cost like: cost of water,electrecity and telephones.The equation of the break even point is

Qb=FC / P-VC Qb:the quantity at break even VC: the variable cost FC:the fixed cost P:the price Technical writing 15/2/2010 Big Star Co. Att. Production Manager Mr. Ahmad

The variable cost is 500 $ the fixed cost is 600 $ the price is 700 $ the total cost =VR+FC TC = 500+600=1100 $ the break even point Qb=FC / P-VC Qb = 600 / (700 - 500)=3