If the sales volumes in the east and west regions had been reversed, what would be the company’s overall break-even point in unit sales?

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02-08-2022
Business

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If the sales volumes in the east and west regions had been reversed, what would be the company’s overall break-even point in unit sales?

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abhaydwive123 abhaydwive123 · Answer 1 · 2022-08-15T06:31:35-04:00

The break-even point is the level of sales at which profits are equal. The company sold 38,000 units in the eastern region and 13,000 units in the western region

Equal gross revenue means no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product.

To calculate the breakeven point in units, use the following formula: Points (Sales) = Fixed Costs ÷ Contribution Margin

The break-even point (BEP) helps the business owner/CFO to realistically check how long it will take to see a return on an investment. For example, calculate or model the minimum turnover required to cover the cost of entering a new location or new market.

Learn more about BEP at

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