How Do I Determine My "Break-Even" Point? [Question Zero]
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Your Break-Even formula is
Fixed costs per month \ (selling price per unit - variable cost per unit)
This will give you the number of units you need to sell in a month to break-even.
Fixed costs are aka operating expenses
Variable cost is aka cost of goods sold
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More answers from Nicole
KISStrategies for Business Inc's Services and Events
Nicely put Nicole lets just assume that the person taking off from the reports know the differences between direct and indirect costs also. Personally I want to see this in my reports also as I like to eat, and entertain the client when I can
Nicole answered it perfectly. I would add, to make it easier to remember, that the selling price less the costs of the goods sold is known as the contribution margin and is what "contributes" to covering the fixed operating costs. So to rephrase, fixed costs/contribution margin = break even volume.