Page 38 - Business Proposal
P. 38
So we get the formula BEP, namely:
Q * = E/(P-V)
As the IDR was given the following formula:
FORMULA TO
CALCULATE BEP = E/(1-V/P)
BREAK EVEN Where:
POINT(BEP) Q * = Quantity of products sold due to break down
TA = Total fixed costs
P = The sales price per unit of the product
V = Variable cost per unit
P-V = Contribution per unit
BEP = Break Even Point (IDR)
1 –V/P = Contribution Margin Ratio
