Page 37 - Business Proposal
P. 37
The formulation of the BEP model is simple, it can be compiled from
the following equation:
FORMULA TO PROCEEDS FROM SALES = TOTAL COST
CALCULATE From this equation, and then formulated as follows:
BREAK EVEN SALES PRICE x QUANTITY = FIXED COST + VARIABLE
POINT (BEP) COSTS
P x Q = Q V x + BT
PQ-VQ = BT
Q = E/(P-V)
