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Hello i tried calculating my break even but only one formula is giving me what is expected, i wonder y d first formulas are given a different result. thank

favoryourl: The money needed to implement this business is N7,451,400.
Total fixed cost = N 2,881,208
Price per unit = N150
Cost per unit =N 92
Total revenue = N17,130,000
Total cost = N10,506,400
Contribution margin = N17,130,000 - N10,506,400
= N6,623,600
Contribution margin ratio = contributions margin ÷ revenue
= N6,623,600 ÷ N17,130,000
= 0.3866667
Break-even (amount) = Fixed cost ÷ contribution margin ratio
= N2,881,208 ÷ 0.3866667
= N7,451,399.
Break-even (units) = Break-even amount ÷ cost per unit
= N7,451,399 ÷ N150
= 49,676 units
Alternatively ;
Breakeven (units) = fixed cost / contribution
= N2,881,208 / (150 - 92)
= 2,881,208 / 58
= 49,676 units.
Break-even (Amount ) = Break even units × price per unit
= 49,676 × 150
= N7,451,400

Hello. The moment i saw your details on this quote, i just knew we were propably in the same line and as soon as i checked ur previous post, i confirmed it. We are both in the Concrete industry. Congrats in advance

favoryourl: The money needed to implement this business is N7,451,400.




Total fixed cost = N 2,881,208

Price per unit = N150

Cost per unit =N 92

Total revenue = N17,130,000

Total cost = N10,506,400



Contribution margin = N17,130,000 - N10,506,400
= N6,623,600

Contribution margin ratio = contributions margin ÷ revenue
= N6,623,600 ÷ N17,130,000

= 0.3866667

Break-even (amount) = Fixed cost ÷ contribution margin ratio

= N2,881,208 ÷ 0.3866667

= N7,451,399.

Break-even (units) = Break-even amount ÷ cost per unit

= N7,451,399 ÷ N150

= 49,676 units

Alternatively ;

Breakeven (units) = fixed cost / contribution

= N2,881,208 / (150 - 92)

= 2,881,208 / 58

= 49,676 units.

Break-even (Amount ) = Break even units × price per unit

= 49,676 × 150

= N7,451,400

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