What you’ll learn to do: calculate the break-even point, where profit will be equal to $0, using information from financial statements

In this section you will learn to calculate the point where the amount of income you earn results in neither a profit nor a loss—and “breaks even.”

The specific things you’ll learn in this section include:

  • Define the break-even point
  • Differentiate between fixed and variable costs
  • Calculate the break-even point
  • Calculate the contribution margin
  • Calculate the contribution margin ratio
  • Calculate the margin of safety

License

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MGMT-1010: Introduction to Business Copyright © by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.