(Selling price - Variable cost)
Breakeven Point is the moment when a company starts to make a profit.
Fixed costs are expenses that do not change in line with the amount produced, having to be paid whether the business trades or not
Variable costs is a cost that varies with level of output
Total cost is the amount of money spent by a firm on producing a given level of output. Total cost are made up of fixed costs (FC) and variable costs (VC).
Sales revenue is the amount realized from selling goods or services in the normal operations of a company in a specified period.
What affects a break even point?
If you change the selling price and variable cost higher or lower it will change
Why is breakeven point useful?
It is useful because a company can know how much they need to sell to cover their costs