What you provide
What you provide
- Monthly fixed costs
- Variable cost per unit
- Selling price and target profit
BUSINESS / UNIT ECONOMICS
See how many units need to sell before fixed costs are covered, then compare that volume with your target monthly profit.
Use boundary
The page finds the contribution from each sale, then divides fixed costs by that contribution to find the break-even unit volume.
Break-even units = fixed costs / (sale price per unit - variable cost per unit). Target-profit units add the desired profit to fixed costs first.
What you provide
What you receive
Use boundary
Use net-of-tax, comparable values. Real-world pricing can include returns, discounts, mix changes, capacity limits, and timing effects.