Worked example
Here is a simple Break-Even example:
10,000 ÷ (50 − 30) → 500.Calculate the sales volume needed to cover fixed and variable costs.
Rounded up to the next whole unit.
Practical guide
Here is a simple Break-Even example:
10,000 ÷ (50 − 30) → 500.Calculate the sales volume needed to cover fixed and variable costs.
Break-even units = fixed costs ÷ (price per unit − variable cost per unit)
Use the result as a planning estimate. Check important financial, tax, legal, investment, or health decisions with a qualified professional.