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Break-even price is the price for which an asset must be sold to cover the costs of acquiring and owning it. Any price higher than the break-even price means profit.
For example, if your fixed costs are $10,000, the selling price per unit is $50, and the variable cost per unit is $30, your break-even point would be 500 units.
Understanding your break-even point can provide you with the answer for when your enterprise will start earning. In this article, we’ll discuss what a break-even point is, why it’s important, and how ...
The break-even point in operations management measures how many units must be sold for the company's profits on sales to equal its fixed costs.
Knowing what your break-even point is will help you come up with realistic sales goals that will ensure the long-term viability of your business. What goes into determining the break-even point?
What goes into determining the break-even point? There are generally four things that you need to know in order to come up with the break-even point: ...
Your Break-even Formula Your break-even point equals your fixed expenses divided by the result of subtracting per unit variable costs from the unit sales price.