1
Breakeven?
Definitions
Total Profit
=
Total Revenue

Total Cost
Break even just means that profit (or profit change)=0
0=Total Profit=Unit Volume*(Unit Price – Unit
Variable Cost) – Total Fixed Cost
Unit Volume*(Unit Price – Unit Variable Cost) = Total
Fixed Cost
Unit Volume*Unit Contribution= Total Fixed Cost
Now, solve for any variable you want
Total break even volume
solve for Unit Volume
Break even price
solve for Unit price
Break even Unit Contribution
solve for Unit Contribution
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