Break Even Point

Break Even Point

Applications of Systems of Linear Equations

Example 1

A company makes a product with a selling price of 1,000 pesos per unit and variable costs of 600 pesos per unit. The fixed costs for the period are 2 million pesos. How many units should be sold to break-even?

Example 3

A company has fixed costs of 15 million pesos and produces one product with a selling price of 3, 600 pesos and a variable cost of 2, 100 pesos per unit. How many units should be sold to break-even?

Example 2

Consider the We Are Jeans store. It costs the business 1, 450 pesos to make a pair of jeans. This includes materials and labor. There’s also the fixed cost amount to consider. Fixed costs can include salaries of employees, insurance, mortgage payments, equipment, and so on. The fixed costs are shared by all the different products sold. In this case, for the jeans, the fixed costs come to 50, 000 pesos. The store sells the jeans for 2, 450 pesos per pair. What is the break-even point?