a. How can the mathematical equation for break-even sales show both sales units and sales dollars?
The mathematical equation for break-even sales shows both sales units and sales dollars is relatively simple. Break even analysis of dollar is the process in which the volume is final and profitable. In the break even sales, the investments are recovered through its profit. Production, salaries and rents are considered in the break even analysis.
Breakeven point helps to identify the profit of the company.
Breakeven units = FC/ (APPU-VCPU)