Costing worked example

Break-Even Quantity with fixed cost of 9,000 $: a worked example

This worked example runs the break-even quantity numbers for a tougher week than the baseline: fixed cost of 9,000 $ instead of the typical 18,000 $. Find how many units must sell to cover fixed and variable costs.

The inputs for this scenario

  • Fixed cost: 9,000 $ (the input this scenario stresses; the baseline uses 18,000)
  • Variable cost per unit: 12.5 $ (held at the documented default)
  • Selling price per unit: 21 $ (held at the documented default)
  • Target volume: 3,000 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Contribution margin = price − variable cost.
  • Break-even quantity works out to 1,059 units at these inputs, and this is the headline figure for the scenario.
  • Contribution margin works out to 8.5 $ / unit at these inputs.
  • Break-even revenue works out to 22,235 $ at these inputs.
  • Profit at target works out to 16,500 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where fixed cost sits at 18,000 $ and the headline result is 2,118 units, this scenario comes in 50% below the baseline at 1,059 units.
  • Use it when evaluating a new product, a tooling or machine investment, or a quote where you need a clear floor volume. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Break-even quantity: 1,059 units (headline result)
  • Contribution margin: 8.5 $ / unit
  • Break-even revenue: 22,235 $
  • Profit at target: 16,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Break-Even Quantity calculator, set fixed cost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.