Breakeven Analysis - Breakeven in Units and Breakeven in Sales

Posted on: 05/08/2023

Cost-Volume-Profit (CVP) analysis provides insights into how variations in both variable and fixed costs impact a company’s profitability. By examining the relationships between sales volume, costs, and revenue, CVP analysis helps organizations make informed decisions about pricing, production levels, and overall financial performance.

The Contribution Margin is a company's revenue minus its variable costs. You can use it to find the Breakeven Point, which is where you aren't making any profit or loss—your net is zero. Another way of looking at the contribution margin is the amount per unit to cover fixed costs. The Contribution Margin formula is Net Sales Revenue—variable Costs = Contribution Margin.

**Breakeven in units and Breakeven in Sales. Net Income, cell C6, is $0.00**

Breakeven Analysis Chart - Multiple Products

Breakeven_Chart_analysis_Multiple_Products (Size: 17.3KB)

YouTube Video - Breakeven in Units and Breakeven in Sales

Breakeven Formulas

Breakeven in Units is the Fixed Cost / Contribution Margin per unit
Breakeven in Sales is the Fixed Cost / Contribution Margin percentage

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Copilot is being developed, so it is at a bargain price. The entire course will be ready in mid-May. Copilot for M365 works in Word, Excel, PowerPoint, OneNote, Outlook, and Teams. Coming soon to OneDrive and Forms.

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Chris Menard

Chris Menard is a certified Microsoft Trainer (MCT) and works as a full-time Trainer at BakerHostetler - one of the largest law firms in the US. He runs a YouTube channel with 900+ technology videos that cover various tools such as Excel, Word, Zoom, Teams, Gmail, Google Calendar, and Outlook. To date, the channel has helped over 20 million viewers. Menard also does 2 to 3 public speaking events every year, presenting at the Administrative Professional Conference (APC), the EA Ignite Conference, the Support Staff Conference, the University of Georgia, and CPA conferences. You can connect with him on LinkedIn at https://chrismenardtraining.com/linkedin or watch his videos on YouTube at https://chrismenardtraining.com/youtube.