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Sales Volume Breakeven Analysis
The breakeven analysis calculator is designed to demonstrate how many units of your product must be sold to make a profit. Hit "View Report" to
see a detailed look at the profit generated at each sales volume level.
Definitions
- Variable unit cost
- Cost associated with producing an additional unit.
- Fixed cost
- The sum of all costs required to produce any product. This amount does not change as production increases or decreases.
- Expected unit sales
- The number of units that are expected to be sold.
- Price
- Price you will be able to receive per unit.
- Total variable costs
- The product of units produced and variable unit cost (example 10 units at $5 variable cost produces a total variable cost of $50).
- Total costs
- Sum of fixed costs and variable costs.
- Total revenue
- Product of price and expected sale unit sales (example 10 units at $10 equals $100 total revenue).
- Profit
- Total revenue minus total costs.
- Breakeven
- Number of units required to sell to make a profit of zero.
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