Method
Break-even units equal fixed costs divided by the contribution margin per unit, where contribution margin is price minus variable cost.
Enter your fixed costs, selling price, and variable cost to get the break-even point.
Break-even units are rounded up to the next whole unit for the revenue calculation. Currency selection labels amounts only and does not use exchange rates.
Useful context
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Break-even units equal fixed costs divided by the contribution margin per unit, where contribution margin is price minus variable cost.
Enter fixed costs, selling price, and variable cost, then review the break-even units and revenue.
Break-even is the point where modeled revenue covers modeled costs; profit begins above that point.
With $10,000 fixed costs and a $50 contribution margin, break-even is 200 units.
The model assumes one product price and constant variable cost. It does not forecast demand or operating risk.
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