How to Calculate Break Even Point in Units (Easy Steps)

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  • Опубликовано: 8 фев 2025
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    Learn Break Even Point the Easy Way.
    Calculating Break Even Point in Units helps businesses determine how much inventory they need to sell to cover their costs.
    In this video, we explore what Break Even Point is, How to Calculate it and discuss an important example.
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Комментарии • 36

  • @Accountinguniv
    @Accountinguniv  5 лет назад +10

    Break Even Point can be tricky but in this video, you will learn how to calculate it the easy way. Please comment if you have questions!

  • @Danielle-mg4kz
    @Danielle-mg4kz 2 года назад +1

    I love the break down of the material in this video! I am taking budgeting and forecasting for the second time and it is one of the last classes for me to be able to graduate. I dropped it the first time because it was not making any sense and I couldn't find a good tutor. I am retaking it now because it's required and I have been struggling every week because the information is overwhelming and math is not something that comes easily to me. I love the way your video is broken down because it's not overwhelming and it finally clicks with me. So thank you so much for taking the time to create these!!

    • @Accountinguniv
      @Accountinguniv  2 года назад

      You're so welcome! Glad I could help 😀

  • @mugiwara8952
    @mugiwara8952 2 года назад +1

    Bro I just want thank you like wow bro my teacher tough me for 3 hours straight and I didn’t even get it but you really made me understand in 4 minutes the goat bro I appreciate fr man ❤

  • @nilogenadampapa9702
    @nilogenadampapa9702 4 года назад +3

    Thank you so much! 100% well explained than other tutorial vids.

  • @esbayenimedia
    @esbayenimedia 3 года назад

    man you can explain in simple and clean i understand accounting becoz of you Thanks👏👏👏

  • @JohnWhite-ms5wr
    @JohnWhite-ms5wr 3 года назад +2

    Thank you for explaining in 4 1/2 minutes what my teacher took 15 minutes to explain and in a way that was so boring I had trouble paying attention for 80% of it (my professor, not you). These college professors need to look up how to make videos that don't put students to sleep watching them.

    • @Accountinguniv
      @Accountinguniv  3 года назад

      Agreed! I’m glad you’re enjoying the videos, thanks for watching 💪

  • @osknara1625
    @osknara1625 2 года назад +2

    Hi thank you for making it so simple to understand !
    May I ask by “Fixed Cost” , is it a monthly or unit fixed cost.
    If fixed cost per month is eg USD5000. For each customer, average revenue is USD80 and average variable cost is USD30. Each month, estimated actual customer volume is 80 customers. What is my break even point ? And what is my break even sales ? Thank you

    • @Accountinguniv
      @Accountinguniv  2 года назад

      Check out this video for more help! :)
      How to Calculate Break Even Point in Units (Easy Steps)
      ruclips.net/video/H1iCv4HS9bI/видео.html

  • @ashleyramlall8042
    @ashleyramlall8042 2 года назад +1

    Wow, this has been extremely helpful!

  • @rahyzav
    @rahyzav 2 года назад

    This was really helpful. Thanks.

  • @DROIDFARM
    @DROIDFARM 2 года назад

    BRO! You ROCK!

  • @ricardobowen7396
    @ricardobowen7396 3 года назад

    Thank you!! great teach

  • @davcounc5074
    @davcounc5074 4 года назад +1

    If you sale multiple items at different prices how will you work that out?

  • @anniendambi899
    @anniendambi899 3 года назад

    Genial! You rally help me to understand the break even👏👏👏

  • @chill_wtjjayudoka
    @chill_wtjjayudoka 7 месяцев назад

    Please how did you get your 6.5 unitsc

  • @AshenafiDemissie
    @AshenafiDemissie 10 месяцев назад

    Example: A company sold 80,000 units earning a profit of Birr 90.000. The Total purchasing Cost of the product is Birr 400,000. Moreover, the company incurred a commission expense (additional cost) of Birr 40,000 at 5% rate. (Hint: commission expense is calculated as a percentage of sales) Develop the total cost equation and find the break-even revenue.

  • @syazaaqilah1501
    @syazaaqilah1501 2 года назад

    All this while i thought fixed cost / with contribution. But it needs to devide again with selling price?

  • @beastmode2581
    @beastmode2581 4 года назад

    So helpful!! Thanks!!!

  • @Aloey9
    @Aloey9 2 года назад

    Love this channel

  • @skinfoot
    @skinfoot 3 года назад

    Thanks

  • @careerguidanceforhighschoo2321
    @careerguidanceforhighschoo2321 4 года назад

    Hey, may you please explain the formular again, why do we divide the fixed costs by the contribution, why don’t we divide the total cost(fc+Vic) and divide this by the sales?

    • @Accountinguniv
      @Accountinguniv  4 года назад

      Hi there! Because the variable costs are already absorbed in contribution margin. So you would take Sales - Variable costs = Contribution Margin. From there you would divide fixed costs over contribution margin. Hope that helps!

  • @johnnabeitler1484
    @johnnabeitler1484 3 года назад +1

    how to calculate if you don't have your contribution margin

  • @ashleymasarira7048
    @ashleymasarira7048 4 года назад

    clear

  • @obigoodnessifenna4706
    @obigoodnessifenna4706 2 года назад

    🔥🔥🔥

  • @DROIDFARM
    @DROIDFARM 2 года назад +1

    I think I will buy your kit, you break stuff down into bite sized bits so my thick head gets it!

  • @fayshalahammed6800
    @fayshalahammed6800 4 года назад +1

    can you help me solve a home work

  • @jamieparker7655
    @jamieparker7655 4 года назад

    My text lists (fixed expenses + Operating income) / Contribution margin per unit = Break-even sales in units. Is this the same?

    • @Accountinguniv
      @Accountinguniv  4 года назад

      Great question. Actually that’s how you find Target income

  • @afsalnoorudheen4748
    @afsalnoorudheen4748 4 года назад

    Plz provide Excel Templates

  • @mikehollowayuk
    @mikehollowayuk Год назад

    Whenever a teacher uses the words You should know this now, you should beware. These types are normally passive aggressive patronisers and clearly inexperienced. Sometimes worse. Stay clear if you're looking for a good teacher. 👎👎👎