Finance & Interest
Intermediate
Break-Even Point
Units to sell to cover all costs.
Formula
Variables
FCFixed costs
PPrice/unit
VCVariable cost/unit
Example
Fixed cost $1000, price $20, variable cost $10: break-even = 1000/(20−10) = 100 units.
Did You Know?
The break-even point is where total revenue finally covers all costs — the first dollar of profit begins after it.