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Quantitative Meaningful
Raw Data Analysis Information
Developing a Model
Developing a Solution
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Scale Schematic
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Copyright © 2012 Pearson Education 1-6
Developing a Model
Garbage
In
Process
Garbage
Out
s = 10 f = 1,000 v=5
Number of spring sets sold = X
Profits = sX – f – vX
0 = sX – f – vX, or 0 = (s – v)X – f
Solving for X, we have
f = (s – v)X
f
X= s–v
Fixed cost
BEP =(Selling price per unit) – (Variable cost per unit)
Fixed cost
BEP =(Selling price per unit) – (Variable cost per unit)