Total Fixed Costs are scaleable Variable Costs per unit are scaleable Revenue per unit is...
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Accounting
Total Fixed Costs are scaleable
Variable Costs per unit are scaleable
Revenue per unit is scaleable
This is why the break-even formula is SPx-VCx-TFC = 0.
nonscaleable would cover FC per unit and TVC which are dependent on actual volume to be the correct measure.
The variable cost per unit and the total fixed costs are used in the breakeven fomula because they are scaleable. In about 4-8 sentences, please explain scaleable vs. nonscaleable and the implications for management.
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