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CFA Level 1
Corporate Finance

Breakeven Point Calculation in Units

Very Easy Measures Of Leverage Breakeven Analysis

In the context of breakeven analysis, breakeven point represents the level of sales at which total revenues equal total costs, and there is no profit or loss. To determine the breakeven point in units, one must consider fixed costs and contribution margin per unit. Understanding the different impacts of sales volume, fixed costs, and variable costs is crucial for effective financial planning.

What is the formula to calculate the breakeven point in units?

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