The graph above demonstrates a break-even point (BEP) of 100 units. In this example, if the business is not able to sell at least 100 t-shirts (units) then it will make a loss.

Break-Even Point Calculation Examples First Example. Assume a company has $250,000 in fixed costs and a gross margin of 20%. The company's break-even sales level would be $1,250,000.

Here's an example of figuring out the break-even point on a real estate investment. A family bought a home for $300,000. They also paid $10,000 in closing costs.

A break-even graph shows the revenue, costs, number of products sold and BEP. An example is below: The graph above demonstrates a break-even point (BEP) of 100 units.

Finishing the example, if the fixed costs equal $3,000, divide $3,000 by $20 to find you need to sell 150 units to break even. Advertisement Article continues below this ad ...

For all points to the right of the break-even point, cost is likely to be lower than revenue. We see the example company reaches its break-even when revenue is about $1,350,000 per month. We also see ...

The break-even point is the volume of sales a business must realize to pay all costs but earn no profit. ... For example, assume the operating expenses for the business are $30,000.

Breakeven Point: Definition, Examples, and How To Calculate. By. ... Break-Even Point = $5,000 ÷ $15 = 333.33 units; As such, this business must sell 334 candles monthly to break even.

Here is an example using the same data as above, broken out further to show the percentages we will be using to further our discussion: In this chart, variable cost as a percent of revenue is 67.3 ...