Chart · Break-Even
Contribution and Break-Even Reference
Compare continuous and whole-unit break-even results for $4,500 fixed costs and a hypothetical $18 selling price as variable cost changes.
The revenue column is deliberately tied to the rounded whole-unit count. At $11 variable cost, the continuous break-even revenue is $11,571.43, but selling 643 complete units produces $11,574 and $1 of operating profit. Both numbers are useful when their definitions are clear; they should not share the same unexplained label.
Exact units = 4,500 ÷ (18 − variable cost); whole units = ceil(exact units)
| Variable cost | Unit contribution | Exact units | Whole units | Revenue at whole units |
|---|---|---|---|---|
| $8 | $10 | 450 | 450 | $8,100 |
| $10 | $8 | 562.5 | 563 | $10,134 |
| $11 | $7 | 642.8571 | 643 | $11,574 |
| $13 | $5 | 900 | 900 | $16,200 |
| $18 | $0 | No positive-cost break-even | Not available | Not available |
| $20 | −$2 | No positive-volume recovery | Not available | Not available |
How to read and reuse this example
Choose one fixed-cost period before using a row. Monthly fixed costs produce required monthly units; annual fixed costs produce annual units. The price and variable cost must remain valid at the required volume. If the next unit triggers another worker or warehouse, use a new cost range instead of extending this straight-line table.
Boundaries and exceptions
This illustration has positive fixed costs. With zero contribution, each sale leaves the same fixed loss; it does not increase that loss. With negative contribution, each additional sale deepens it. Zero fixed cost is a separate boundary: zero sales can already break even even when no positive-sales break-even threshold exists.
Method reference: OpenStax: Break-Even Points in Units and Dollars. Checked October 22, 2026. Contribution and cost-volume-profit relationships; examples are independently constructed.
Related calculators & guides
- Break-Even Calculator
- How to Find Your Break-Even Point
- Contribution Margin: Formula and Examples
- Gross vs. Contribution Margin: Different Cost Views
- Contribution per Order vs. per Unit
- Weighted Contribution Margin: Units vs. Revenue
- Multi-Product Break-Even: Use a Sales-Mix Basket
- Target Profit Sales Volume: Add the Dollar Goal
- Margin of Safety: Sales Above Break-Even
- Step Fixed Costs: Recheck Break-Even at Each Level
- Capacity-Constrained Break-Even: Is the Target Feasible?
- Operating Leverage: Why Profit Moves Faster Than Sales
- When Break-Even Does Not Exist in the Model
- Target Profit Units Calculator
- Sales Mix Break-Even Calculator
- Mixed Sales Break-Even Worked Example
- Break-Even and Contribution Planning
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