Publicité
| Break-Even Results | Value |
|---|---|
| Break-Even Point (Units) | 1 000 units |
| Break-Even Point (Sales) | $15 000 |
| Contribution Margin | $10 |
| Contribution Margin Ratio | 66,67% |
The break-even point is where total revenue equals total costs, resulting in neither profit nor loss. At 1 000 units or $15 000 in sales, you will break even.
The contribution margin of $10 per unit represents the amount each unit contributes to covering fixed costs and generating profit.
A contribution margin ratio of 66,67% indicates the percentage of each sales dollar available to cover fixed costs and generate profit.
