Advanced Break-Even Analysis Calculator

Step-by-Step Guide:

1. Single Product Analysis: Calculate break-even point for one product or service
2. Multi-Product Analysis: Analyze break-even for multiple products with different margins
3. Sensitivity Analysis: Test how changes in costs or prices affect profitability

Key Terms:

• Fixed Costs: Expenses that don't change with production volume (rent, salaries, insurance)
• Variable Costs: Costs that change with each unit produced (materials, labor per unit)
• Break-Even Point: Number of units needed to cover all costs (no profit, no loss)
• Contribution Margin: Price per unit minus variable cost per unit

Example Scenario:

A bakery with $5,000 monthly rent (fixed cost), $3 ingredient cost per cake (variable), and $15 selling price needs to sell 417 cakes monthly to break even.