Break-Even Analysis

$25,000

$20,000

$15,000

TFC
TVC

$10,000

TC
Sales
Profit

$5,000

$0
0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

($5,000)
Break-Even Point (units) = 2,000
Total Fixed Costs
Variable Cost per Unit
Sales Price per Unit

TFC =
VCU =
SPU =

Break-Even Point ($'s) = $10,000

$3,000
$3.50
$5.00

Formulas:
BEP (units) = TFC/(SPU-VCU)
BEP ($'s) = BEP (units) * SPU

Copyright, 2010, JaxWorks, All Rights Reserved.