Hi, 1) Wouldn’t the depreciation schedule of 10,000 and the labor cost of $15 x 317 days (Mon-Thurs for 1 yr) be included in the fixed cost? I was given formula FC/P-VC =Breakeven where FC is fixed

Hi,

1) Wouldn’t the depreciation schedule of 10,000 and the labor cost of $15 x 317 days (Mon-Thurs for 1 yr) be included in the fixed cost?

I was given formula FC/P-VC =Breakeven

where FC is fixed cost, P is price and VC is variable cost.

2) I was given formula P(x)= FC + VC(x)+ NC

Where x is number of tests and NC is net contribution

Are these the formulas that you used? Can you put the formulas on the excel document, please. I am having problems determining the variable and fixed cost.

Thanks for your help.

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