(M3-1)
The formula that provides the volume at which total revenue equals total costs.
(M3-2) Z=Demand−μσ
The number of standard deviations that demand is from the mean, μ.
(M3-3) EMV = (Price/unit - Variable cost/unit) × (Mean demand) − Fixed costs
The expected monetary value.
(M3-4) Oppertunity loss=⎧⎩⎨⎪⎪K(Break-even point - X) for X ≤ Break-even point$0 for X > Break-even point
The opportunity loss function.
(M3-5) EOL=KσN(D)
The expected opportunity loss.
(M3-6) D=∣∣μ−Break-even pointσ∣∣
An intermediate value used to compute EOL.