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Break Even Point Units. When sales exceed the break-even point the unit contribution margin from the additional units will go toward profit. Your break even point is 60 units per month.
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Our online tool makes break-even analysis simple and easy. When sales exceed the break-even point the unit contribution margin from the additional units will go toward profit. Break-even analysis calculates a margin of safety where an asset price or a firms revenues can fall and still stay above the break-even point.
Your break even point is 60 units per month.
In order to calculate your companys breakeven point use the following formula. 2000 units 15 30000 2. Therefore the break even point is often referred to as the no-profit or no-loss point The break even analysis is important to business owners and managers in determining how many units or revenues are needed to cover fixed and variable expenses of the business. Again looking at the graph for break-even Figure 38 you will see that their sales have moved them beyond the point where total revenue is equal to total cost and into the profit area of the graph.
