Enter fixed costs, the price per unit and the variable cost per unit. We compute the units and revenue needed to break even.
Contribution margin = price − variable cost. Units = fixed cost ÷ contribution margin.
Break-even tells you the bare-minimum sales you must hit each month to keep the doors open. Anything above is profit; anything below is loss.
A break-even computed weekly is the single most useful number on a Kenyan SME’s wall.
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