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 reduction in cost per unit is an economy due to scale. Determining the fixed and variable expenses is the first step in performing a break-even analysis. The number of units needed to break even = fixed costs / (price-variable costs per unit). This equation provides a small business owner with a great deal of valuable information by itself, and it can also be changed to answer a number of important questions, like whether a planned expansion will be profitable.