How do you calculate break even sales?
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The break-even point in sales dollars can be calculated by dividing a company's fixed expenses by the company's contribution margin ratio. The contribution margin is sales minus variable expenses. When the contribution margin is expressed as a percentage of sales it is referred to as the contribution margin ratio.
2023-05-13 15:01:28
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Julian Clark
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The break-even point in sales dollars can be calculated by dividing a company's fixed expenses by the company's contribution margin ratio. The contribution margin is sales minus variable expenses. When the contribution margin is expressed as a percentage of sales it is referred to as the contribution margin ratio.