Determination of product price based on Break Even Point

800
Variable cost/unit $ 1.65
Fixed cost $ 90 700
Price/unit $ 3.00 600

BEP unit 66.7 500

$
Break even
Break Even Point $ 200 400 point

Find the price such that BEP will be $200 300

200

100

0
0 50 100 150 200
Unit sales

Fixed Cost Total Cost Revenu

Unit Fixed Cost Variable Co

0 90 0
5 90 8.25
10 90 16.5
15 90 24.75
20 90 33
25 90 41.25
30 90 49.5
35 90 57.75
40 90 66
45 90 74.25
50 90 82.5
55 90 90.75
60 90 99
65 90 107.25
70 90 115.5
75 90 123.75
80 90 132
85 90 140.25
90 90 148.5
95 90 156.75
100 90 165
105 90 173.25
110 90 181.5
115 90 189.75
120 90 198
125 90 206.25
130 90 214.5
135 90 222.75
140 90 231
145 90 239.25
150 90 247.5
155 90 255.75
160 90 264
165 90 272.25
170 90 280.5
175 90 288.75
180 90 297
185 90 305.25
190 90 313.5
195 90 321.75
200 90 330
205 90 338.25
210 90 346.5
215 90 354.75
220 90 363
225 90 371.25
230 90 379.5
Break even
point
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50 100 150 200 250

Unit sales

ost Total Cost Revenue

Total Cost Revenue Profit

90 0 -90.0
98.25 15 -83.3
106.5 30 -76.5
114.75 45 -69.8
123 60 -63.0
131.25 75 -56.3
139.5 90 -49.5
147.75 105 -42.8
156 120 -36.0
164.25 135 -29.3
172.5 150 -22.5
180.75 165 -15.8
189 180 -9.0
197.25 195 -2.3
205.5 210 4.5
213.75 225 11.3
222 240 18.0
230.25 255 24.8
238.5 270 31.5
246.75 285 38.3
255 300 45.0
263.25 315 51.8
271.5 330 58.5
279.75 345 65.3
288 360 72.0
296.25 375 78.8
304.5 390 85.5
312.75 405 92.3
321 420 99.0
329.25 435 105.8
337.5 450 112.5
345.75 465 119.3
354 480 126.0
362.25 495 132.8
370.5 510 139.5
378.75 525 146.3
387 540 153.0
395.25 555 159.8
403.5 570 166.5
411.75 585 173.3
420 600 180.0
428.25 615 186.8
436.5 630 193.5
444.75 645 200.3
453 660 207.0
461.25 675 213.8
469.5 690 220.5
omo's Tutorial on Determination of product price based on Break Even Point

http://people.revoledu.com/kardi/tutorial/Finance/BreakEvenPoint/