Break-even can be calculated in two ways:

CALCULATING The TOTAL SALES a business needs to make to cover costs and the
NUMBER OF UNITS a business must sell to cover costs
BREAK-EVEN POINT Here are a couple of examples of how to calculate the break-even point.

Olga’s bakery sells a loaf of bread for $4.00
per unit. To calculate the break-even point,
you need to know the fixed costs and the
variable costs per unit.
Fixed costs - $1000 (total per month)
Variable costs - $2.00 (per unit)
Sale price - $4.00 (per unit)

1 CALCULATING THE
2 CALCULATING THE
BREAK-EVEN POINT IN TOTAL SALES BREAK-EVEN POINT IN NUMBER OF UNITS
Fixed Costs ÷ Contribution Margin = Total sales Fixed costs ÷ (Sale price per unit – Variable costs per unit)

Contribution Margin is the difference between the price 1000 ÷ ($4 - $2) = 500 number of units to break-even point
of a product and what it costs to make that product.

The calculation is as follows:

(Sale price per unit – Variable costs per unit ÷

Sale price per unit
To confirm this figure you can take the 500 units,
$1000 ÷ .50 = $2000 total sales to break-even point and multiply that by the $4.00 sales price,
to get the $2000 amount.