Breakeven Analysis - Breakeven in Units and Breakeven in Sales

Posted on:  05/08/2023
Breakeven Analysis - Breakeven in Units and Breakeven in Sales

The Contribution Margin is a company's revenue minus its variable cost. You can use the Contribution Margin to find the Breakeven Point. The Breakeven Point is where you aren't making any profit nor have a 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

Breakeven in units and Breakeven in Sales

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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