Break-even sales
Find how many units could cover your fixed costs.
How it works
Contribution per unit = price − variable cost per unit.
Break-even units = fixed costs ÷ contribution per unit. Round up to the next whole unit.
Use the result: What genuine research could help you judge whether this sales target is realistic?
Ready Pouch example
Ready Pouch is our fictional example business. Its proposed product is a small pencil pouch for students. Meet Ready Pouch
USD 600 ÷ (USD 6 − USD 2) = 150 units. These are fictional teaching figures.
Assumptions
Use one currency and one time period. This simple model assumes a constant price and cost per unit, with all units made also sold. Include all relevant fixed costs. A target of 150 sales does not prove that 150 customers will buy.
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