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The variables are: fixed costs (F), Sales price per unit (P), variable cost
per unit (V), number of units sold (U), and gross profit (GP). One can
readily evaluate GP, U or P given the four other variables. To calculate the
break-even volume, simply let the gross profit equal zero and calculate the
number of units sold (U).
To calculate the break-even volume:
1. Key in the fixed costs and press
2. Key in the unit price and press
3. Key in the variable cost per unit and press
4. Press
To calculate the gross profit at a given volume:
1. Key in the unit price and press
2. Key in the variable cost per unit and press
3. Key in the number of units sold and press
4. Key in the fixed cost and press
Break-Even Point
to calculate the break-even volume.
Fixed Costs
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to calculate the gross profit.
53
Profit
Variable
Costs