# 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 (BEPU) 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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