| | Break Even Analysis |
| | | | Volume Units | 1000 | | | 2000 | | | 1000 |
| | | | Per Unit | Total | | Per Unit | Total | | Per Unit | Total |
| | Sales | | $ 100 | $ 100,000 | | $ 90 | $ 180,000 | | $ 90 | $ 90,000 |
| | Variable Cost | | 60 | 60,000 | | 60 | 120,000 | | 60 | 60,000 |
| | Contribution Margin | | $ 40 | $ 40,000 | | $ 30 | 60,000 | | $ 30 | 30,000 |
| | Fixed Cost | | 30 | 30,000 | | 15 | 30,000 | | 30 | 30,000 |
| | Operating Income | | $ 10 | $ 10,000 | | $ 15 | 30,000 | | $ - 0 | - 0 |
| | Total Costs | | $ 90 | $ 90,000 | | $ 75 | $ 150,000 | | $ 90 | $ 90,000 |
| | Variable Cost: | | Costs that will change (vary) based upon production or output (in total) |
| | Fixed Costs: | | Costs that do not change (vary) based upon production or output (in total) |
| | (Sales(u) x Q) - (VC(u) x Q) - FC = Operating Income |
| | (Sales(u) x Q) - (VC(u) x Q) - FC = $0 |
| | ((Sales(u) - VC(u)) x Q) - FC = $0 |
| | ((Sales(u) - VC(u)) x Q) = FC |
| | (CM(u)) x Q = FC |
| | Q = FC / CM(u) |
| | Q = 30,000 / $30 |
| | Q = 1,000 |
racingnmyblood
break_even_analysis-guide.xlsx
