Breakeven Analysis

Find out how many and at what price you must sell your product to make a profit.

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.

 

Breakeven

Number of units required to sell to make a profit of zero.

Read more about
Financial Education