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Break Even Formula Units. At this point revenue would be 10000 x 12 120000 and costs would be 10000 x 2 20000 in variable costs and 100000 in fixed costs. The breakeven number of units as the name suggests is the number of units of goods or services that a company needs to sell in order to break even or in other words to suffer no financial losses but also make no profit.
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Alternatively you can find the break-even point in sales dollars and then find the number of units by dividing by the selling price per unit. The calculation for the break-even point can be done one of two ways. Thus youre neither earning nor losing money.
Breaking Even To calculate your break even point in units divide your total fixed costs by your contribution margin per unit.
At this point revenue would be 10000 x 12 120000 and costs would be 10000 x 2 20000 in variable costs and 100000 in fixed costs. The break-even point is the point where a companys revenues equals its costs. At this point revenue would be 10000 x 12 120000 and costs would be 10000 x 2 20000 in variable costs and 100000 in fixed costs. 50000 95 55 50000 40 1250 units Weighted average selling.
