Can someone please tell me the different ways to get break even? I researched on the internet and found BE in sales and units but they look like the exact same thing without any differentiation.
Having issues with breakeven equation
3 answers
Hi Anonymous,
I think this would be easier to answer if you provided the example you were stuck on?
Generally breakeven is just the time when:
revenue = cost
To break this down to what works in most cases:
price*annual volume sold*number of years = initial investment + fixed costs*number of years + variable cost*annual volume sold*number of years
Let me know if this doesn't apply to your example! :)
Kay
Hi,
Break even is when the volumes you sell allow you to cover your fixed cost.
Litteraly the fixed cost are payed by the margin you generate on each product sold.
Therefore
Break Even Volume = Fixed costs / (Price - variable costs)
Hope this helps
Best
Benjamin
Hi,
Its:
(Price - VC)*Q - FC = 0
Best!
