ECONOMICS

Detailed explanation-1: -To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. Here’s What We’ll Cover: What Is the Break-Even Point?

Detailed explanation-2: -In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production.

Detailed explanation-3: -To calculate your break-even (units to sell) before net profit: Break-even (units) = overhead expenses ÷ (unit selling price − unit cost to produce)

Detailed explanation-4: -The break-even point is where total sales revenue equals total cost. The contribution margin ratio can be calculated by subtracting the variable cost ratio from one. The break-even point in sales dollars is equal to the break-even units multiplied by cost.

Detailed explanation-5: -Total profit at the break-even point is zero.