America Voted: The 20 Most Annoying TV Hosts. November 6, 2014 9:37 AM By Jay Edwards. WASHINGTON - JULY 26: Court-TV and CNN personality Nancy Grace speaks during a rally in support of the Children's Safety Act (H.R.3132) July 26, 2005 on Capitol Hill in Washington, DC.
Break-even revenue equals fixed costs divided by contribution margin ratio, which equals contribution margin divided by total revenue. The contribution margin is equal to the difference between revenue and variable costs. Fixed costs include rent, insurance, administrative salaries, maintenance and property taxes. A small business would incur some fixed costs even if it doesn't have any revenue.
The denominator of this equation is the contribution margin. Imagine a company where fixed costs are $60,000, the price of the product is $2.00 per unit and variable costs are 80 cents per unit. Here is an example: Breakeven point = $60,000/$2.00 - $0.80 = 50,000 units.The contribution margin in this case is $1.20 per unit.ontribution Margin per unit of sales = Sales Revenue per Unit-Variable Expenses per Unit. Contribution Margin-Fixed Costs = Net Operating Profit or Loss. The break-even formula calculates the point at which a company's sales are zero-there is no profit or loss: