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Break Even Point (in sales dollars) Example



This video walks you through an example of how to calculate the Break-even Point in sales dollars.

To calculate the Break-even Point in terms of sales dollars (or any other currency), you divide the total fixed costs by the Contribution Margin Ratio (the Contribution Margin Ratio is the Unit Contribution Margin divided by the selling price per unit. The Unit Contribution Margin is the selling price per unit minus the variable cost per unit).

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21 Bình luận

  1. Jo3y Wils0n

    10/10 explanation – Straightforward and to the point. I wish I could like twice.

  2. Aurelian Smith Jr.

    cal·cu·late

  3. Jana Brown-Griffith

    THANK YOUUUU

  4. STYLES2482

    Love it! Love it! Love it!

  5. Tingfu J

    Service company
    R&D expense , installation fee and assets purchase. Above item need to count into break even revenue?

  6. Ana Jimenez

    Thank you

  7. ytuong1

    Dear Friends,

    I want to confirm:

    If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.

  8. Alexa Blandino

    amazing video!

  9. RangerXXT

    wow thanks a ton for this, my class focused on units and didn't touch sales at all, then suddenly 'figure out sales dollars'

  10. Alex Nguyen

    Great video. Took my professor 15 minutes and students still didn't understand lol

  11. OraNui

    Took me a long time to figure this out and it was your video that really helped me. Thank you so much!

  12. Sattor boy

    Hello !
    how can i calculate contribution margin an break even points for guesthouses . i have an plan to run guesthouses but i could not calculate it for 4 single rooms , 6 double rooms, and 5 triple rooms and cost for each visitor 20$ for single , 13$ for double and 9$ for triple. variable cost 12$,8$and 5$ respectively. fixed cost 300$ . please help me how can i calculate for guests numbers in order to get break even point thank you

  13. Keifus

    Dude, You are seriously one of the best at explaining Accounting 1 and 2.

  14. Lavania Del Rey

    Helpful

  15. Jesus Rosales

    Thanks! Helping out with homeworking.

  16. Noah French

    easier solution is subtract S-VC and then you will get the profit. divide the fixed cost to the profit which is 3 dollars and in units you need to sell 80,000 ice cream cones. each of them are 4 bucks so just multiply the units to the selling price.

  17. Jack lazzary

    That's so marvelous, very impressive

  18. Thulani Balizulu

    Very helpful! Have been struggling with this for a while.

  19. Ally & Tori Scholten

    You rock!!

  20. Mozzy Bear

    is the variable cost per cone the same thing as Average variable cost?

  21. XEKUTER

    Great video man. Can you do an in depth video on process costing please.

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