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Engineering Economics2D

Introduction to Engineering Economics - Theory & Concepts

Fundamental concepts, terminology, and the economic environment in engineering.

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Cost Behavior & Break-Even Analysis

Fixed Cost5,000 $

Costs that remain constant regardless of production volume (e.g., rent, insurance).

Variable Cost per Unit15 $/unit

Costs that vary directly with production volume (e.g., direct materials, labor).

Selling Price per Unit30 $/unit

The revenue generated per unit sold.

Max Graph Quantity1,000 units

Analysis Summary

Contribution Margin:$15.00/unit
Break-Even Quantity:334 units

Cost & Revenue vs. Quantity

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At Break-Even: Total Cost=Revenue=$10,000Total\ Cost = Revenue = \$10,000