The formula for break-even point BEP is very simple and calculation for the same is done by dividing the total fixed costs of production by the contribution margin per unit of product manufactured. Reducing the variable costs. To calculate break even sales divide all fixed expenses by the average contribution margin percentage.
The formula for break even analysis is as follows.
To calculate the break-even point you divide the total fixed costs by the difference between the unit price and variable costs. Break Even Point in Units Fixed CostsContribution Margin. For the calculation of break-even point for sales mix following assumptions are made in addition to those already made for CVP analysis. Increasing the sale price.
