Breakeven Point: Definition, Examples, and How to Calculate
It is essential in determining the minimum sales volume required to cover total costs and break even. Fixed costs are costs that do not change based on your production or sales volume (e.g., rent, insurance, and salaries). Variable costs are costs that fluctuate depending on how much you produce (e.g., raw materials, labor per unit). Simply enter your fixed business costs, your variable unit costs and your sales price to estimate the number of units you would need to sell…
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