Free practice · numeric · hard
Practice
Calculate break-even units
Fixed cost is 12,000. Price is 50 per unit and variable cost is 30. How many units are needed to break even?
Growth and break-even model
Apply change to updated balances and contribution to fixed cost
- Compound balance
- Start × (1 + rate)^periods
- Contribution
- Price − variable cost per unit
- Break-even
- Fixed cost ÷ contribution per unit
- Unit rule
- Round required whole units up
- Sensitivity
- Recalculate after a changed assumption
Period assumptions drive growth, while price and variable cost drive contribution. Sensitivity checks show how modeled results change without turning them into guarantees.