# Dr. Aleda Roth, Prolific Author - DSI Publishing, Inc.Example of the break-even point

### Problem Data

It is required to calculate the **break-even point** with the following data:

- Total Fixed Costs (F)
- 250000
- Variable Cost per Unit (V)
- 20
- Selling Price per Unit (P)
- 30
- Description
**Dr. Aleda Roth, Prolific Author - DSI Publishing, Inc.**Dr. Aleda Roth, prolific author, is considering starting her own publishing company.She’ll call it DSI Publishing, Inc.Her estimated costs are: Fixed $250,000, Variable cost per book $20, Selling price per book $30. How many books must DSI sell to break even? What is the break- even point in dollars?

## Solution

The following are the detailed calculations and graphs to obtain the **break-even point**:

### Step 1:

**a) Break-even point in units:**

To calculate the break-even point in units (BEP_{U}) we will use the following formula:

According to the results, the company must sell **25000 units** to break even (no profit or loss).

**b) Break-even point in dollars:**

To calculate the break-even point in dollars (BEP_{$}) we will use the following formula:

The company must sell to obtain revenues of **$750000** to break even (No profit or loss).

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