9.2 Identify Sensitive Variables

Revenue – Variable Cost – Fixed Cost = Profit. where . Revenue = #Units Sold * Price per Unit (in dollars) and . Variable Cost = #Units Sold * Variable Cost per Unit (in dollars) To identify the key variables and solve the equation we first set profit to zero, then solved for the amount of units sold to determine break-even point: ................
................

In order to avoid copyright disputes, this page is only a partial summary.