10,000 Units To Break Even
With $10,000 fixed costs, a $6.00 price and $5.00 variable cost per unit, break-even is 10,000 units ($60,000 revenue).
How This Works
Each unit sold contributes its "contribution margin" (price minus variable cost) toward covering fixed costs. Once enough units are sold to cover all fixed costs, every additional unit is pure profit.
Formula
Example
$10,000 in fixed costs, selling at $50/unit with $30 variable cost, breaks even at 500 units ($25,000 revenue).
Frequently Asked Questions
How many units to break even with $10,000 fixed costs?
10,000 units, generating $60,000 in revenue.
What is contribution margin?
Price per unit minus variable cost per unit — the amount each sale contributes toward covering fixed costs (and then profit, once fixed costs are covered).