Break-Even Point Calculator

The Break-Even Point is the level of sales at which total revenue equals total costs, resulting in neither profit nor loss.

Key Concepts:

• Fixed Costs: Expenses that don't change with production volume (rent, salaries, insurance).
• Variable Costs: Expenses that increase with each unit produced (materials, direct labor).
• Contribution Margin: Selling Price minus Variable Cost per unit. This is what contributes to covering fixed costs.

Formula: Break-Even Units = Fixed Costs ÷ (Selling Price - Variable Cost)