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Break Even Point (in sales dollars) Example



This video walks you through an example of how to calculate the Break-even Point in sales dollars.

To calculate the Break-even Point in terms of sales dollars (or any other currency), you divide the total fixed costs by the Contribution Margin Ratio (the Contribution Margin Ratio is the Unit Contribution Margin divided by the selling price per unit. The Unit Contribution Margin is the selling price per unit minus the variable cost per unit).

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