Break-Even in Units

Definition: The break-even point in units is the sales volume at which total revenue equals total costs (zero profit). Below this volume the company incurs a l…

Equation

Break-Even Units = Fixed Costs / Contribution Margin Per Unit

The break-even point in units is the sales volume at which total revenue equals total costs (zero profit). Below this volume the company incurs a loss; above it, each additional unit contributes to profit.

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