n evaluation to look for the point at which income obtained equals the expense involving getting the revenue. Break-even analysis calculates what is called a margin of security, the amount that revenues surpass the break-even point. This is the quantity that revenues can fall while however keeping above the break-even point.
A formula used to figure out the breakeven point for: (1) Sales volume (wide range of units): fixed prices / contribution per unit. (2) Sales revenue (buck amount) fixed expenses x cost per product ÷ contribution per unit.