Write the definition for breakeven analysis in words and write the definition for breakeven analysis
total revenues-total variables costs-fixed costs=profit
($50.x volume)-($20.xvolume)-500,000=profit
For accounting breakeven, profit is zero, so the equation becomes:
($50x volume)-($20x volume)=500,0000
or equivalent
(contribution margin x volume)=$500,000\
thus, the breakeven volume is $16,667 tests:
($30xvolume)=500,000
volume=$16,667 tests
For economic breakeven, insert the desired profit amount on the right side of the equation in place of $0.