Anonymous
Mar 12
2.1.2 Determine the point where the selling price is the same as the cost price??? ?
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ChatGPT
Mar 12
The point where the selling price is the same as the cost price is known as the break-even point. This is the point at which the revenue generated from selling a product or service equals the total costs incurred to produce and sell that product or service.
To determine the break-even point, you can use the following formula:
Break-even point = Fixed costs / (Selling price per unit - Variable costs per unit)
Where:
- Fixed costs are the costs that do not change with the level of production or sales.
- Selling price per unit is the price at which the product or service is sold.
- Variable costs per unit are the costs that vary with the level of production or sales.
By plugging in the values for fixed costs, selling price per unit, and variable costs per unit, you can calculate the break-even point. At this point, the selling price will be the same as the cost price.
To determine the break-even point, you can use the following formula:
Break-even point = Fixed costs / (Selling price per unit - Variable costs per unit)
Where:
- Fixed costs are the costs that do not change with the level of production or sales.
- Selling price per unit is the price at which the product or service is sold.
- Variable costs per unit are the costs that vary with the level of production or sales.
By plugging in the values for fixed costs, selling price per unit, and variable costs per unit, you can calculate the break-even point. At this point, the selling price will be the same as the cost price.
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