Break-Even Sales for Year 2: (Operating Expenses of $245,000 + Annual Debt Service of$30,000)/ Gross Profit Margin of 30 percent (.30) = $916,667 break-even salesfigure ...

A break-even analysis is a key part of any good business plan. It can also be helpful even before you decide to write a business plan, when you're trying to figure out if an idea is worth pursuing.

Therefore this company must sell 15,000 units just to break even. The next unit sold thereafter is the first contribution to profit. This company must sell 15,001 units to make a tiny profit of $10.

Break-even Analysis. Break-even analysis consists in determining the value of a parameter for which the conclusion of an analysis switches from `Do it' to `Don't do it.' It is commonly applied to ...