Finance Example – Break Even Analysis. The break even point for a business is given by the formula: B = F/P-V

One year later, the manager was perplexed because Verizon’s 2012 annual revenues were 10 percent lower than those in 2011-the price increase apparently led to a reduction in the company’s revenues. Did the manager make an error? Explain.
January 4, 2018
a government has proposed allowing the student of any family with less than $50,000 in savings to attend a public university for free. Discuss the direct and possible indirect effects of such a policy.
January 4, 2018

Finance Example – Break Even Analysis. The break even point for a business is given by the formula: B = F/P-V

Finance Example – Break Even Analysis.
The break even point for a business is given by the formula:
B = F/P-V

where:
B = units sold to breakeven point
F = fixed costs
P = price per unit
V = variable costs

Assume EducateComp knows its fixed expenses are $100,000, its variable costs are $500 per copy of AlgeComp, and they must to sell 15000 copies of AlgeComp to break even the first year. Determine the minimum price per unit they should charge?

B = F /P-V

 

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