Guides
Guides
Separate fixed and variable costs
Break-even math depends on assigning costs to the right bucket.
GuidesUnderstand contribution per unit
Contribution is the amount each unit adds toward fixed costs and profit.
GuidesWhy break-even units round up
A fraction of a unit usually cannot complete the break-even requirement.
GuidesExtend break-even to a target profit
Add the desired profit to fixed costs before dividing by unit contribution.
GuidesUse break-even scenarios instead of one answer
Price, cost and volume assumptions can change together.