Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
3

Having issues with breakeven equation

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.

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.

3 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer

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 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

Book a coaching with Benjamin

100% Recommendation Rate

55 Meetings

517 Q&A Upvotes

USD 319 / Coaching

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,

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

Book a coaching with Vlad

98% Recommendation Rate

413 Meetings

11,464 Q&A Upvotes

USD 239 / Coaching

Hi,

Its:

(Price - VC)*Q - FC = 0

Best!

Hi,

Its:

(Price - VC)*Q - FC = 0

Best!

Related case(s)

Caribbean Island – MBB Final Round

Solved 7.4k times
Caribbean Island – MBB Final Round A wealthy client has recently bought an island in the Caribbean. She has engaged us to identify possible uses for her new island.
4.6 5 395
| Rating: (4.6 / 5.0)

A wealthy client has recently bought an island in the Caribbean. She has engaged us to identify possible uses for her new island. Open whole case

Similar questions

No similar questions available