I know you have answered this question before, please do so again in a step by step instructions: Breakeven analysis is a tool that tells a firm what capacity it must have to achieve profitability. It is the point, in dollars and units, at which costs equals revenue. To achieve profitability firms must operate above this point. Page 318 319, 13th edition provides formulas for calculating BEP in dollars or units. Given the following data, calculate the BEP in units, BEP in dollars, and profit at 100,000 units;

P=$8/unit Selling price

V=$4/unit Variable cost

F= $50,000 Fixed Cost

BEP in units (BEPx) = Total fixed Cost / Price Variable Cost 50,000/ 8-4 =

Break even in dollars (BEP$) = Total Fixed Cost / 1- Variable Cost /Price

Subject Operations Management

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