Break-Even Price: Definition, Examples, and How To Calculate It
The BEP in dollars is $30,000 as shown in the computation at 2,000 units. Alternatively, it can be computed as total fixed costs divided el paso bookkeeping services by contribution margin ratio. Hence, fixed costs of $20,000 divided by CM ratio of 66.67% results in the BEP in dollars of $30,000. What Are Some Limitations […]