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Published Aug. 25, 2011
This is a graph illustrating when fixed plus variable costs equal business revenue. That is, you neither lost or made any money on that volume for that product or service. Usually this calculation is shown as a graph but numbers of units and dollars are shown on the grid.
Every startup existing company must balance costs with revenues or they will lose money. This calculation, using an Excel formula, will calculate when a certain volume of sales will equal your fixed and variable costs. The variable costs are the cost per unit of volume. Most business plans will show this calculation.