calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs (Sales price per unit Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs Contribution Margin.

Suppose there are TWO locations for lunches: One in a higher-income area, and the other in a lowerincome area. A: Fixed Expense =$5,000. Revenue/unit =$15. Cost/unit =$5 B: Fixed Expense =$6,000. Revenue/unit =$13. Cost/unit =$5 Compute breakeven quantity separately for A and B. [Post calculations and your answer] Combine A and B to compute combined breakeven. [Post calculations and your answer] Does it look like B is getting a subsidy from A ? Is there a different word to use other than 'subsidy