Operating breakeven quantity of sales identifies the number of units produced and sold at which revenues equal operating costs. That’s when a firm’s operating profit equals zero. To calculate it, you divide the fixed operating costs by the contribution margin, which is the difference between the price and variable cost per unit. The operating breakeven point refers to the sales level a firm must maintain to cover its operating 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.
Operating 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—Breakeven Quantity of Sales, Degree of Financial Leverage, and Degree of Operating Leverage.