Well this is obviously a break even formula. Though this question doesn't
exactly apply as an Excel question, it the "(1 minus (Variable Cost ÷
Sales))" portion of the formula, you are subtracting the "Variable Cose
devided by Sales" from 1. Why, I don't exactly know. However the link
below may explain a little more.

https://www.agecon.purdue.edu/planne.../breakeven.pdf

Regards,
Paul

"Kim Shelton at PDC" wrote in
message ...
The formula below has a "1 minus" in part of it. Does anyone know what
this
means or is doing. I understand the whole formula except that.

="Base B/E = Fixed Expense ÷ (1 minus (Variable Cost ÷ Sales))"