At this point in time all expenses have been accounted for so the product investment or business begins to generate profit. Total Fixed costscontribution margin per unit Break-even sales unit Calculation. It is the point at which a business breaks even or recovers the amount of money that has been put into the business.
Total Fixed costscontribution margin per unit Break-even sales unit Calculation.
The formula for determining the break-even point in dollars of product or services is the total fixed expenses divided by the contribution margin ratio or. In other words the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Break-Even point sales dollars Fixed Costs Contribution Margin. Break-Even point units Fixed Costs Sales price per unit Variable costs per unit or in sales dollars using the formula.