Given the list of monthly expenditure of an organization, selling price and the overhead maintenance of each item, the task is to calculate the Break Even Point.
Break Even Point refers to the number of items sold in order to neutralize the total expenditure i.e. Overall, neither profit nor loss.
Input: Expenditure = 18000, S = 600, M = 100
We need to sell 36 items to cover expenditure and maintenance overhead
Input: Expenditure = 3550, S = 90, M = 65
- Calculate the sum of all the expenditures.
- Subtract the maintenance (Cost price) from the selling price.
- Divide the expenditure sum by the above-obtained amount to get the minimum number of items to be sold (Break Even Point).
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