The revenue needed to cover fixed costs at a given contribution margin.
Ventas = CF ÷ MC%
What each letter means
- CF: Fixed costs
- MC%: Contribution margin
An example
With CF = €15,000, MC% = 45.8%: Break-even sales = €32,751.09.
The revenue needed to cover fixed costs at a given contribution margin.
With CF = €15,000, MC% = 45.8%: Break-even sales = €32,751.09.