FinanceTier 515 minintermediate

Break-Even Point for a New Service Line

Work out how many units of a new service must sell before it covers its own 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 the break-even point
• Round a break-even unit count up, not to the nearest whole number

Excel skills

Break-even analysis, ROUNDUP · Financial Functions

The task

Eight new service 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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