Microsoft Excel

Breakeven Analysis - Breakeven in Units and Breakeven in Sales

Chris Menard

07 May 2023 — 1 min read

**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

YouTube Video - Breakeven in Units and Breakeven in Sales

Excel - Breakeven in Units and Sales - YouTube

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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