Factors used for determining the point at which a company's expenses equal its revenue. Variable factors, such as average per-unit sales price and average per-unit cost, can be adjusted to arrive at different break-even outcomes, while monthly fixed costs generally must remain static.
Related information about breakeven formula:
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Definition of breakeven formula: A formula used to determine the breakeven point for: (1) Sales volume (number of units): fixed costs / contribution per unit.
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If you look at the breakeven formula, you can see that there are two solutions. You can either raise the price of your product or you can find ways to cut your costs ...
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Dec 3, 2010 ... Document Sample Accounting Breakeven Formula. Description. Accounting Breakeven Formula document sample. Shared by: ukr15189 ...
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Nov 14, 2008 ... Simple … the breakeven formula for units looks like this: Unit Breakeven Point per month = (Fixed costs per month) ÷ (Unit $ Contribution ...
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When you don't know what your Variable Costs will be, you can use a variation on the Breakeven Formula, provided you know what your Gross Margin will be as ...