Your breakeven point is where your profit equals zero. As long as your gross margin is greater than zero, every unit sold after you have reached your breakeven point will add to your profitability. If your gross margin is less than zero, regardless of the units sold, there is no breakeven point.

Breakeven Analysis Summary | |
---|---|

Variable Cost | VARIABLE_UNIT_COST per unit |

Fixed Cost | FIXED_COST |

Expected Sales | EXPECTED_UNIT_SALES units |

Price | PRICE per unit |

Total Revenue | TOTAL_REVENUES |

Total Variable Costs | TOTAL_VARIABLE_COSTS |

Profit | PROFIT |

- Variable unit cost
- Cost associated with producing an additional unit.
- Fixed cost
- The sum of all costs required to produce any product. This amount does not change as production increases or decreases.
- Expected unit sales
- The number of units that are expected to be sold.
- Price per unit
- Price you will be able to receive per unit.
- Total variable costs
- The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50).
- Total costs
- Sum of fixed costs and variable costs.
- Total revenue
- Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue).
- Profit
- Total revenue minus total costs.
- Break-even
- Number of units required to sell to make a profit of zero.

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