What is the balance point

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Reference no: EM133204141

What is the Balance Point? Figure in income or units that indicates how much must be sold to reach the breakeven point between investment and profit. Which indicates that you neither win nor lose.

Balance Point Formula in units: Read module content.

Exercise: Touché Toiletries, Inc., has developed an addition to its Lizardman Cologne line that is tentatively branded as Ode d'Toade Cologne. Variable unit costs (VUC) are 30 cents per three-ounce jar, and heavy advertising expenses in the first year would result in total fixed costs (TF) of $700,000. Ode d'Toade eau de toilette is priced at $6.50 per three-ounce bottle (PV). How many bottles of Ode d'Toade must be sold to break even on this new release?

Reference no: EM133204141

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