Break Even Analysis The break even analysis calculator is designed to demonstrate how many units of your product must be sold to make a profit. Hit "View Report" to see a detailed look at the profit generated at each sales volume level. |
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Definitions Variable unit cost: Cost associated with producing an additional unit. Fixed cost: The sum of all costs required to produce any product. This amount does not change as production increases or decreases. Expected unit sales: The number of units that are expected to be sold. Price: Price you will be able to receive per unit. Total variable costs: The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50). Total costs: Sum of fixed costs and variable costs. Total revenue: Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue. Profit: Total revenue minus total costs. Break even: Number of units required to sell to make a profit of zero. The information presented is of a general nature only and may omit details related to your particular circumstances, and accordingly cannot be regarded as legal or tax advice. Please contact the office to discuss how this information pertains to your specific financial or tax situation. |
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