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Engineering Economics2D

Break-Even and Sensitivity Analysis - Theory & Concepts - Eng Mgmt Break Even

Decision making under uncertainty using Break-Even (linear and non-linear) and Sensitivity analysis.

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Break-Even Analysis Tool

Fixed Costs (FC)50,000 $

Rent, salaries, insurance, etc.

Variable Cost per Unit (VC)20 $

Materials, labor per unit, etc.

Price per Unit (P)45 $

Selling price of the product.

Break-Even Point

Units:2,000
Revenue:$90,000
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