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
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