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Fixed Cost at Breakeven Point Formula

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Fixed costs are business expenses that don't change with the level of production or services provided. Examples include rent, salaries, and insurance. Check FAQs

FC = n B \cdot C S - n B \cdot C V

FC - Fixed Cost?n_B - Production Capacity at Breakeven Point?C_S - Selling Cost per Unit?C_V - Production Cost per Unit?

Fixed Cost at Breakeven Point Example

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With units

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Here is how the Fixed Cost at Breakeven Point equation looks like with Values.

Here is how the Fixed Cost at Breakeven Point equation looks like with Units.

Here is how the Fixed Cost at Breakeven Point equation looks like.

50000 = 10000 \cdot 20.01 - 10000 \cdot 15.01

50000 = 10000 \cdot 20.01 - 10000 \cdot 15.01

50000 = 10000 \cdot 20.01 - 10000 \cdot 15.01

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Fixed Cost at Breakeven Point Solution

Follow our step by step solution on how to calculate Fixed Cost at Breakeven Point?

FIRST Step Consider the formula

FC = n B \cdot C S - n B \cdot C V

Next Step Substitute values of Variables

∴

FC = 10000 \cdot 20.01 - 10000 \cdot 15.01

Next Step Prepare to Evaluate

∴

FC = 10000 \cdot 20.01 - 10000 \cdot 15.01

LAST Step Evaluate

∴

FC = 50000

Fixed Cost at Breakeven Point Formula Elements

Variables

Fixed Cost

Fixed costs are business expenses that don't change with the level of production or services provided. Examples include rent, salaries, and insurance.

Symbol: FC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Fixed Cost

Production Capacity at Breakeven Point

Production Capacity at Breakeven Point refers to the level of output or the number of units a business needs to produce and sell in order to cover all its costs and break even.

Symbol: n_B

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Production Capacity at Breakeven Point

Selling Cost per Unit

Selling cost per unit is the total cost of selling one unit of a product, including the cost of production and any additional selling expenses.

Symbol: C_S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Selling Cost per Unit

Production Cost per Unit

Production cost per unit refers to the average cost incurred by a business to produce a single unit of a product.

Symbol: C_V

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Production Cost per Unit

Other formulas in Cost Estimation category

Go Total Capital Investment

TCI = FCI + WCI

Go Fixed Capital Investment

FCI = TCI - WCI

Go Working Capital Investment

WCI = TCI - FCI

Go Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule

C 2 = C 1 \cdot ({(\frac{Q 2}{Q 1})}^{n}) \cdot (\frac{I 2}{I 1})

How to Evaluate Fixed Cost at Breakeven Point?

Fixed Cost at Breakeven Point evaluator uses Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit to evaluate the Fixed Cost, Fixed Cost at Breakeven Point refers to the total fixed expenses incurred by a business when it produces or sells enough units to cover all its costs but not enough to generate a profit. Fixed Cost is denoted by FC symbol.

How to evaluate Fixed Cost at Breakeven Point using this online evaluator? To use this online evaluator for Fixed Cost at Breakeven Point, enter Production Capacity at Breakeven Point (n_B), Selling Cost per Unit (C_S) & Production Cost per Unit (C_V) and hit the calculate button.

FAQs on Fixed Cost at Breakeven Point

What is the formula to find Fixed Cost at Breakeven Point?

The formula of Fixed Cost at Breakeven Point is expressed as Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit. Here is an example- 50000 = 10000*20.01-10000*15.01.

How to calculate Fixed Cost at Breakeven Point?

With Production Capacity at Breakeven Point (n_B), Selling Cost per Unit (C_S) & Production Cost per Unit (C_V) we can find Fixed Cost at Breakeven Point using the formula - Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit.

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Fixed Cost at Breakeven Point Formula

Fixed Cost at Breakeven Point Example

Fixed Cost at Breakeven Point Solution

Fixed Cost at Breakeven Point Formula Elements

Other formulas in Cost Estimation category

How to Evaluate Fixed Cost at Breakeven Point?

FAQs on Fixed Cost at Breakeven Point

Variable Name