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View Full Version : How to calculate bep in units sold?


Pryde2k
Dec 14, 2011, 11:31 AM
What the formula to calculate the break even point in units sold for a company?

ebaines
Dec 14, 2011, 12:15 PM
Break even volume = Total fixed costs/(Unit sale price- Variable unit cost). Note that since:

Unit Sale Price - Variable Unit Cost = Contribution Margin per unit sold

essentially you break even when your total contribution margin from all units sold equals your fixed costs.