Inputs
Please fix the following:
- Fill all inputs to calculate.
Rent, salaries, utilities—costs that don't change with sales.
Materials, labor per unit—costs that increase with each sale.
Must exceed variable cost per unit.
Units needed = (Fixed Costs + Target Profit) ÷ (Price − Variable Cost)
Margin of Safety = (Actual Sales − Break-Even Sales) / Actual Sales
Formula: Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)