Break-Even Analysis

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The break-even point will be used to determine the quantity that the firm will produce and cover all the cost.

Break-even point in unit=Fixed cost/ (Selling price-Variable cost)

Also, the break-point is attained when the total cost is equal to the total revenue


The total revenue for the industry is $600,000



Producing 333,333 units will enable the firm to achieve its competitive advantage.

Loma Linda

Fixes cost=$180,000

Total variable cost=$0.25+0.75+0.75=$1.75



Q=280,000 units


Fixed cost=$170,000

Variable cost=$1+$1+$1=$3



=143,333 units

September 25, 2023

Business Economics



Subject area:

Business Analysis

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