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What is break even quantity?

Updated: 9/21/2023
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11y ago

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The point at which the value of sales of an item equals the total expenses incurred in producing or obtaining it.

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Sherwood Ritchie

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2y ago
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Q: What is break even quantity?
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Related questions

In finance what is BEQ?

Break Even Quantity The formula is the fix cost/price-variable


What is a break-even quantity?

The point at which the value of sales of an item equals the total expenses incurred in producing or obtaining it.


Why do you get an even number when you add two even numbers?

An even number is always some quantity of 'twos' (2's), and any quantity of twos is an even number. The first even number is a quantity of twos, and the second even number is another quantity of twos. When you add the first quantity of twos to the second quantity of twos, you get a new quantity of twos. Since the new quantity of twos is a quantity of twos, it's an even number.


How do you calculate break even point?

1) By drawing up the Break-even chart and determine the intersection point between the Total revenue and Total cost curve. 2) Using the break even quantity formula = Fixed cost / per unit Contribution ( to find break even in $, you simply use the above result and times it with the selling price.)


What is the break even quantityif the cost of manufacture is the same whichever method is used if A is a fixed cost of 40000 and a variable of 23 and b has a fixed cost of 52000?

There question is incomplete:There is no variable cost given for manufacturing method B. I'll assume it is b.It is unclear as to quantity for which the cost of manufacturing by both methods is the same. I'll assume it is the break-even quantity.The break even point is when the revenue from sales = cost of manufactureSo the question is asking for what quantity is the cost of manufacture using method A equal to the cost of manufacture using method B.cost of manufacture = fixed cost + variable cost × quantityMethod A: manufacturing cost = 40,000 + 23 × quantityMethod B: manufacturing cost = 52,000 + b × quantity→ 40,000 + 23 × quantity = 52,000 + b × quantity→ 23 × quantity - b × quantity = 52,000 - 40,000→ quantity(23 - b) = 12,000→ quantity = 12,000/(23 - b)I'll let you fill in the value of b; if b has no variable cost, b = 0.


When was Break Even created?

Break Even was created in 2005.


How do you calculate the break-even point for EBIT?

How to calculate the break even of EBIT


How do you calculate the market share to break even?

I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.


How do you calculate the break even market share?

I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.


What are underlying assumptions in break even point analysys?

1- quantity of units produced = quantity of unit sold , so there is no change in invetory . 2- prices will remain fixed. 3- variable cost rate will remain fixed 4- total fixed costs will remain fixed up to maximum manufacuring capacity of the firm


What is meant by break-even point.how the physical facilities affect the break-even point?

tutti


The difference between Break Even Concept and Break Even Chart?

its a pinaplle under the sea