Break-Even Analysis: Calculate Contribution Margins and Unit Sales Goals

Operating Safety with Break-Even Analysis Every business manager should know their break-even target—the exact dollar sales volume required to hit zero profit/loss.

Fixed vs. Variable Costs * **Fixed Costs**: Overhead expenses that do not change with sales volume (e.g. office rent, software retainers, salaries). * **Variable Costs**: Outlays that scale directly with unit volume (e.g. raw product manufacturing, packaging boxes, delivery postage).