How do you calculate the break-even point in terms of sales?

Question

Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate · Answer

total cost = total sales revenue

Muhammad Raheel Siddiqui · Answer

By adding up fixed and variable cost and if the income goes above this point the firm starts making profit.

Muhammad Kassab CPA CMA CertIFR · Answer

Break-Even point = Total Fixed costs / Unit Contribution Margin

The Break-even point is the point where total Contribution Margin equals Fixed Costs.

Unit contribution margin = selling Price - Variable cost ( DM + DL + V. OH + V. S&A)

Fixed Costs = F. OH + F. S&A

Ahmed mohsen · Answer

The contribution margin ratio is the contribution margin divided by sales (revenues)

Soliman Abd ALmalak Gendy · Answer

The break -even point   is the business  vol5 that balances  total costs  with  total gains