How the break-even point works
Formula. Break-even units = fixed costs ÷ (price − variable cost per unit). The amount in brackets is the contribution each sale makes towards fixed costs.
Example. 2,400 ÷ (6.50 − 4.20) = 1,044 units a month.
Tip. You have three levers: raise the price, cut the cost per unit, or cut fixed costs. Small price rises usually move break-even the most.