ENTERPRISE THEORY
-
THE ECONOMIC RESULT AND THE BREAK EVENT POINT
.
Tomáš Pražák
Lecturer

  E = f ( Q ) = v x Q +F
NE= V + F
where
F … total fixed costs [CZK]
v … unit variable costs [CZK/piece, CZK/kg, CZK/l, …]
V … total variable costs
Q … volume of production [pcs, kg, l, …]
COSTS

  S = (p x Q)
where
p ... selling price per piece [CZK/piece]
Q … volume of production [pcs, kg, l, …]
SALES



















•the found relationship can be used to calculate the so-called "limit" quantities:
olimit value of fixed costs
olimit value of unit variable costs
olimit price