New Port Beach Business Daily

How to calculate break even revenue when variable cost and selling price is changing every year?

HI How to calculate break even revenue when variable cost and selling price is changing every year? what is the formula to calculate break even revenue under such circumstances? hii selling price times?? variable cost times??? the selling price and variable cost differs every year. some one explain it clearly...please!

Public Comments

1. well i know what break even revenue means .but i dont know the formula..sorry !
2. Obviously a break even calculation only applies to the point in time the numbers are for - it changes continuously, but most likely not very much very fast. let n be the number of items sold, calculate by solving the equation selling price times n = variable cost times n, plus fixed costs is breakeven number of items sold - revenue for that would be selling price times n
3. Use This formula Profit Volume Ratio = Change in Contribution / Change in sales * 100 Break Even = Fixed Cost / PV Ratio