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Unformatted text preview: DECLINE: sales decline, profits may give way to losses, declining competitors, new products arise to replace or render the product obsolete. Current as of 12/14/2010 BCOR 1010 Break-Even Analysis A Pricing Strategy Break-even point (expressed in number of units /services you must sell) = Q (quantity) Total Fixed Costs Q = ___________________ Price – Variable Costs Where: Fixed costs are all the expenses that remain the same regardless of how many products are made or sold (like the amount of money paid to rent or own a building). Variable Costs are costs that change depending on the number of units you sell or produce (like the cost of shoelaces in running shoes) Included in this figure are all the expenses for materials used in making products and the labor costs. Current as of 12/14/2010...
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