Break-Even Units
Break-Even Revenue
Contribution Margin
(Price - Variable Cost)Margin Ratio
% contribution to fixed costsThe break-even point (BEP) is the point at which total cost and total revenue are equal. There is no net loss or gain, and one has "broken even."
Expenses that remain the same regardless of production output (e.g., rent, insurance).
Costs that change in proportion to the good or service that a business produces (e.g., raw materials).
The selling price per unit minus the variable cost per unit. This covers fixed costs and generates profit.