Administration and Executive AssistantTier 530 minintermediate

Break-Even Analysis

Work out how many units a product must sell to cover its fixed costs.

What you will learn

• Calculate contribution per unit as selling price minus variable cost per unit
• Divide fixed costs by contribution per unit to find break-even units
• Round break-even units up, and explain why rounding down would understate what is actually needed

Excel skills

ROUNDUP, basic arithmetic · Cost-Volume-Profit Analysis

The task

Eight product lines, each with its own fixed costs, selling price and variable cost per unit. Work out how many units each one needs to sell to break even, and what that break-even point is worth in revenue.

You work in a real spreadsheet in your browser, and your answer is checked against hidden traps the moment you submit.

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