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What is the Break-Even Analysis Formula? The formula for break-even analysis is as follows: Break-Even Quantity = Fixed Costs / (Sales Price per Unit – Variable Cost Per Unit)
Break-Even Point Formula. Break-even analysis involves a calculation of the break-even point (BEP). The break-even point formula divides the total fixed production costs by the price per individual...
The break-even point is the volume of activity at which a company's total revenue equals the sum of all variable and fixed costs. The activity can be expressed in units or in dollar sales. The break-even point is the point at which there is no profit or loss.
The formula for calculating the break-even point (BEP) involves taking the total fixed costs and dividing the amount by the contribution margin per unit. Break-Even Point (BEP) = Fixed Costs ÷ Contribution Margin.
The break-even point formula is calculated by dividing the total fixed costs of production by the price per unit less the variable costs to produce the product.
Formula. There are two approaches to calculate the break-even point. One can be in quantity termed as break-even quantity, and the other is sales, which are termed as break-even sales. In the first approach, we have to divide the fixed cost by contribution per unit i.e. Break-Even Point (Qty) = Total Fixed Cost / Contribution per Unit.
July 02, 2014. Post. Share. Save. Buy Copies. In a world of Excel spreadsheets and online tools, we take a lot of calculations for granted. Take breakeven analysis. You’ve probably heard of it....