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

Total Fixed Costs TFC = $3,000 Formulas:

Variable Cost per Unit VCU = $3.50 BEP (units) = TFC/(SPU-VCU)
Sales Price per Unit SPU = $5.00 BEP ($'s) = BEP (units) * SPU