Reviewed by Khadija Khartit Fact checked by Pete Rathburn Break-even analysis is the study of the amount of sales or units sold that are required to break even after incorporating all fixed and ...

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Break-even can be calculated using the contribution method. This involves working out the contribution that each product sold provides towards the fixed costs of a business. Firstly, a business ...

\(Break-even = \frac{fixed costs}{selling price-variable cost (per unit)}\) The result of this calculation is always how many products a business needs to sell in order to break even. So this ...