Determine required sales volume (units and revenue) to cover fixed and variable costs and achieve break-even.
Determine the required sales volume (units and revenue) to cover all fixed and variable costs.
Break-even Units
750 UnitsBreak-even Revenue
NPR 3,75,000.00Margin per Unit
NPR 200.00(40% Margin)
Break-even Revenue: NPR 3,75,000.00 • Unit Contribution: NPR 200.00
Grade A+ (Distinction)
Compute the minimum sales volume and revenue required to cover total fixed and variable operating costs.
Provide fixed overhead costs, variable cost per unit, and sale price per unit. The tool computes break-even volume.
Contribution Margin = Price per Unit - Variable Cost per Unit Break-Even Units = Fixed Costs / Contribution Margin Break-Even Revenue = Break-Even Units x Price per Unit
Fixed Costs NPR 50,000, Unit Price NPR 500, Unit Variable Cost NPR 300 => Contribution Margin NPR 200 => Break-Even Units = 250 units (NPR 1,25,000 revenue).
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