Break-Even Point in Sales
The break-even point in sales is a situation in which a company has no profits or
losses or otherwise, is the sales level which makes zero profit. Any sale, above the break-even point represents a
To calculate the break-even point of a company with multiple product lines, we use, as a mean to simplify, the concept of contribution margin (CM) rather than the unit contribution margin.
The contribution margin is the difference in value or percentage, between the sales and the sum of the direct variable cost and variable expenses and shows the revenue contribution to cover fixed costs and expenses.
The Safety Margin is an indicator that tells how much sales can decrease before reaching the losses. Consequently, we can say that, a negative margin of safety indicates losses.
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To calculate the Break-Even Point in sales, enter data as requested, using the point as a decimal separator. Ex 22,532.34 enter: 22532.34 and the results will be displayed automatically after one click on Calculate.
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