A small workshop
Fixed costs 10,000, price 50, variable cost 30: contribution 20 per unit, break-even 500 units or 25,000 revenue.
The break-even point is the sales volume at which your revenue covers all your costs. Enter your fixed costs, your selling price and your variable cost per unit to know how many units you must sell before making a profit.
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Fixed costs 10,000, price 50, variable cost 30: contribution 20 per unit, break-even 500 units or 25,000 revenue.
Selling price minus variable cost per unit: what each sale contributes to covering fixed costs. Break-even units = fixed costs ÷ contribution margin.
You cannot sell part of a unit. 333.3 units means you need to sell 334 to cover all costs.
Every sale then increases the loss, and there is no break-even point. Raise the price or lower the variable cost.
Find your profit and margin from cost and price, or the price you need for a target margin.
Turn a cost into a selling price with a markup percentage or multiplier, and see the resulting margin.
Work out the hourly and daily rate you need from your target income, costs, time off and billable hours.