Break-Even Formula
Expression: Break-Even Units = Fixed Costs / (Price − Variable Cost)
Break-even is where total revenue equals total costs. Contribution margin (Price − Variable Cost) determines how many units cover fixed costs.
Example: Fixed ₹50,000, price ₹200, VC ₹120
FC=50,000, P=200, VC=120
Units = 50,000 / (200 − 120) = 625
Result: 625 units to break even