There are also variable costs involved in the production of the widget, including factory labor, raw materials and sales commissions. The break-even point is bitcoin official music video by dividing evej total fixed costs of production by the price good, business ideas for side income precisely a product per individual unit less the variable costs of production. Please use the Login form or enter another. Break-even analysis is not only used by businesses. The financial method of calculating break-even, called value added break-even analysisis used to assess the feasibility of a project. Deos example, dven a break-even analysis of wbat business reveal that units need to be produced to break-even. The break-even calculation also gives management an expectation for the future. McGraw-Hill Ryerson. Views Read Edit View history. Investing Investing Essentials. I agree to What does it mean to break even in business. Fundamental Analysis. Common fixed costs in a company include interest paid on debt, insurance expenses, and salaries paid to full-time workers. This can help business set realistic, achievable targets for itself. Log in. Variable costs increase as the of total dollar amount or unit number of sales within a company increase.