Break-Even Point in Sales Dollars

The Break-Even Point in Sales Dollars calculator computes the Break-Even Point based on the Total Fixed Costs and the Contribution Margin Ratio.

INSTRUCTIONS: Choose the preferred currency and enter the following:

• (FC) This is the total fixed costs.
• (CMR) This is the contribution margin ratio

Break-Even Point: The calculator returns the break-even point in U.S. dollars.  However, this can be automatically converted to other currency units via the pull-down menu.

General Information

The Break-Even Point in Sales Dollars can be calculated by dividing a company's fixed expenses by the company's contribution margin ratio. In accounting, the break-even point refers to the revenues needed to cover a company's total amount of fixed and variable expenses during a specified period of time. The revenues could be stated in dollars (or other currencies), in units, hours of services provided, etc.

Compute the number of units sold needed to break even with the Break-Even Analysis Calculator

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
• "Achieving a Desired Profit and Break-even Point in Dollars | AccountingCoach." AccountingCoach.com. N.p., n.d. Web. 07 Aug. 2015.
• "What Is the Break-even Point? | AccountingCoach." AccountingCoach.com. N.p., n.d. Web. 07 Aug. 2015.