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15-11-1
Break-Even Point
15-11 Break-Even Point
Break-Even Point lets you calculate the amount you must sell to break even or to obtain a
specified profit, as well as the profit or loss on particular sales.
Break-Even Point Fields
The following fields appear on the Break-Even Point calculation page.
Field Description
PRC Selling price per unit
VCU Variable cost per unit
FC Fixed costs
PRF Amount of profit realized
QBE Number of units to be sold
SBE Amount that must be obtained from sales to break even
r
% Proportion of sales amount retained as a profit (as a percent)
Financial Application Default Setup for Examples
You can use the [Format] tab to change the following settings. You can also change these
settings by tapping the status bar.
Profit Amount/Ratio: Amount (PRF)
Break-Even Value: Quantity
Scenario
Your company is producing items with a unit variable cost ([VCU]) of $50/unit and fixed costs
([FC]) of $100,000. The items will be sold for a sales price ([PRC]) of $100/unit.