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Find your break-even point — the units and revenue needed to cover all costs
Contribution Margin
₹500
Per unit
Break-Even Units
₹1,000
Break-Even Revenue
₹10,00,000
Margin of Safety
₹50
%
The break-even point is where total revenue equals total costs. At this point, the business makes zero profit but also zero loss. Beyond this, every sale generates profit.
Break-Even Units = Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit)
Contribution Margin = Selling Price − Variable Cost