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BREAK-EVEN ANALYSIS

Fixed Costs Variable Unit Costs


Costs required to produce the first unit of a product. Costs that vary directly with the production of one additional unit.
Definition Cost Definiton Cost
500.00 2.50

Unit Selling Price: 5.00


The amount of money charged to the customer for each unit of a product or service.

Expected Unit Sales: 310


Number of units of the product projected to be sold over a specific period of time.

Break-Even Units: 200.00


BREAK-EVEN ANALYSIS

Total Fixed Costs: 500.00 18000


Total Variable Unit Costs: 2.50 16000
Expected Unit Sales: 310 14000
Price per Unit: 5.00 12000 Fixed Cost
10000 Variable Cost
Break Even Units: 200.00 Total Cost
8000
Revenue
6000
You will be making profit after 200.00 units. 4000
2000
0

Units Fixed Cost Variable Cost Total Cost Revenue Profit


100 500.00 250.00 750.00 500.00 -250.00
200 500.00 500.00 1,000.00 1,000.00 0.00
300 500.00 750.00 1,250.00 1,500.00 250.00
310 500.00 775.00 1,275.00 1,550.00 275.00
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Fixed Cost Variable Cost Total Cost Revenue
1 1 100 100 100 500 250 750 500 FALSE
31 10 200 200 500 500 1000 1000 You will be making profit after 200.00 units.
301 100 300 300 500 750 1250 1500
3001 1000 400 400 500 1000 1500 2000
30001 10000 500 500 500 1250 1750 2500
300001 100000 600 600 500 1500 2000 3000
3000001 1000000 700 700 500 1750 2250 3500
30000001 10000000 800 800 500 2000 2500 4000
300000001 100000000 900 900 500 2250 2750 4500
1,000 1,000 500 2500 3000 5000
1,100 1,100 500 2750 3250 5500
1,200 1,200 500 3000 3500 6000
1,300 1,300 500 3250 3750 6500
1,400 1,400 500 3500 4000 7000
1,500 1,500 500 3750 4250 7500
1,600 1,600 500 4000 4500 8000
1,700 1,700 500 4250 4750 8500
1,800 1,800 500 4500 5000 9000
1,900 1,900 500 4750 5250 9500
2,000 2,000 500 5000 5500 10000
2,100 2,100 500 5250 5750 10500
2,200 2,200 500 5500 6000 11000
2,300 2,300 500 5750 6250 11500
2,400 2,400 500 6000 6500 12000
2,500 2,500 500 6250 6750 12500
2,600 2,600 500 6500 7000 13000
2,700 2,700 500 6750 7250 13500
2,800 2,800 500 7000 7500 14000
2,900 2,900 500 7250 7750 14500
3,000 3,000 500 7500 8000 15000
3,100 3,100 500 7750 8250 15500