Understanding the cost of each unit you produce is essential to ensure your business remains profitable. To calculate the cost per unit, add all of your fixed costs and all of your variable costs ...

Every business owner should understand the cost of production. Whether you manufacture tires, bake cookies or wash windows for a living, you need to know your costs per unit to ensure you are charging ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Ebony Howard is a certified public ...

The Weatherhead School of Management, part of Case Western Reserve University, provides a succinct definition of break-even analysis on its Web site of the same name: “On the surface, break-even ...

The graph above demonstrates a break-even point (BEP) of 100 units. Construct a chart with output (units) on the horizontal (X) axis, and costs and revenue on the vertical (Y) axis. Choose a ...

The market's concentration on Tesla, Inc. gross profit margins overlooks the lack of progress in cutting unit production costs. Tesla's ability to grow gross profit globally has been aided by first ...

Break-even can be calculated using the contribution method. This involves working out the contribution that each product sold provides towards the fixed costs of a business. Firstly, a business must ...