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Breakeven

The sample uses fixed 8000, cost 12, and price 35.

Breakeven units

348

Per unit
23
Revenue
12,180
Profit
38,000

Margin is price minus variable cost. Units are the fixed cost divided by that margin, then rounded. A price that does not clear the cost has no breakeven. 8000, 12, and 35 are 348 units and revenue 12180.

Why this exists

A fixed cost such as rent does not grow when one more unit is sold. Breakeven is the count whose margin covers that cost.

A price at or under cost loses money on every sale. The numbers stay in this browser.

  1. 01How to use it

    Fixed 8000, variable cost 12, and price 35 leave 23 per unit, 348 units to breakeven, and revenue 12180. At 2000 units the profit is 38000. 500 units make 3500, 1000 units make 15000, and 1500 units make 26500.

    Margin is price minus variable cost. Units are the fixed cost divided by that margin, then rounded. A price that does not clear the cost has no breakeven. 8000, 12, and 35 are 348 units and revenue 12180.

  2. 02What you get

    348 / 23 / 12180.

    3500 / 15000 / 26500 / 38000.

    Entered8000 · 348 · 12180 · 38000

    8000 348
    23 12180
    2000 38000
    500 3500

  3. 03Worth knowing

    Margin is price minus variable cost. Units are the fixed cost divided by that margin, then rounded. A price that does not clear the cost has no breakeven. 8000, 12, and 35 are 348 units and revenue 12180.

    A fixed cost such as rent does not grow when one more unit is sold. Breakeven is the count whose margin covers that cost.

Questions

Q348?
A348
Q12180?
A12180
Q38000?
A2000 / 38000
Q23?
A35 - 12 = 23

How this page works it out

Margin is price minus variable cost. Price 35 minus cost 12 leaves 23. Fixed cost 8000 divided by 23 is 347.8, which rounds to 348 breakeven units. Revenue at that count is 12180.

At a chart maximum of 2000 units the profit is 38000. The ladder is a loss at 0 units, 3500 at 500 units, 15000 at 1000 units, and 26500 at 1500 units. A price under the cost has no breakeven.

A fixed cost such as rent does not grow when one more unit is sold. The numbers stay in this browser.

  • # 348
  • # 12180
  • # 38000
  • # 23