Break-Even Analysis
Also called: break even point, breakeven volume
Break-even analysis finds the sales volume at which total revenue covers total cost. It converts a business plan into a single testable number — how many units, how many customers — which is usually more revealing than the projected profit. The gap between expected volume and break-even volume is the margin of safety, and a thin one means the plan depends on everything going right.
Formula
Break-even units = Fixed costs ÷ Contribution margin per unit