Doing the Break-Even analysis

So how much units you think you need to manufacture so that you would be able to break even? This post would help you find out the break-even point.

There are three things you need to know to calculate the break-even point

• Selling Price of Product
• Cost of Manufacturing Product(Variable Cost)
• Fixed CostsDuration to break-even

Now, when you have calculated the quantity to break even you need to know the time required to break even. Suppose you can manufacture X quantity in a day. Then break even quantity divided by X would give you the duration to break even.