Breakeven quantity of sales represents the number of units produced and sold at which total costs equal total revenues. That’s when a firm’s net income equals zero. To calculate it, you divide the sum of fixed operating and financial costs by the contribution margin, which is the difference between the price and the variable cost per unit. The breakeven point determines the sales volume a firm must reach to cover its fixed and variable costs. In this template, you can calculate the metric for a company of your choice in just a few clicks.
This open-access Excel template is a useful tool for accountants, financial analysts, corporate finance practitioners, finance managers, and anyone preparing a corporate presentation.
Breakeven Quantity of Sales is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Corporate Finance course.
You can also explore other related templates such as—Operating Breakeven Quantity of Sales, Degree of Financial Leverage, and Degree of Operating Leverage.