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Question
what is the formula for determining a break - even point?
break - even point = total cost / product or service sales price
break - even point = total cost x product or service sales price
break - even point = total cost + product or service sales price
break - even point = total cost - product or service sales price
The break - even point is the quantity of units that need to be sold to cover all costs. It is calculated by dividing the total cost by the product or service sales price. This is because at the break - even point, total revenue (quantity sold times sales price) equals total cost.
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Break - even point = Total cost / Product or service sales price