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
YouTube Video - Breakeven in Units and Breakeven in Sales
Breakeven Formulas
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Breakeven in Units is the Fixed Cost / Contribution Margin per unit
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Breakeven in Sales is the Fixed Cost / Contribution Margin percentage
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Chris Menard
Chris Menard is a Microsoft Trainer (MCT) and works as a full-time Trainer at BakerHostetler - one of the largest law firms in the US. Chris runs a YouTube channel with 900+ technology videos that cover various tools such as Excel, Word, Zoom, Teams, Gmail, Copilot, Google Calendar, and Outlook. To date, the channel has helped over 20 million viewers.
Menard also does 2 to 3 public speaking events yearly, presenting at the Administrative Professional Conference (APC), the EA Ignite 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.
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