Finance
Find the break-even point
=B1/(B2-B3)How it works in Excel
- B1 is your fixed costs.
- B2-B3 is what each sale adds after its own cost.
- The result is how many units you must sell.
- B2-B3 is called the contribution margin.
- Round up, because you cannot sell part of a unit.
The idea in general
Each sale chips away at your fixed bills, and break-even is when they are all paid.
What I assumed
- Fixed costs are in B1, the price is in B2 and the cost per unit is in B3.
Check the result on your own data before relying on it.