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Labs
The break-even frontier
Volume only helps if each unit contributes.
Live experiment
The break-even frontier
Operating profit1,000
Before you move a sliderCan selling more units make the business lose more money?
Break-even = 4000 ÷ (50 − 30) = 200 units (200 whole units)
Read the mechanism
Each unit's contribution pays the fixed bill first and only then creates profit. If the variable cost climbs above the price, every extra sale digs the hole deeper. The straight line holds only while prices, costs and capacity stay put.
Model assumptions and units
One product, a constant price and unit cost, and fixed costs that stay fixed across the modeled range. Capacity limits, step costs and mix changes are left out. Round a fractional break-even up when only whole units can be sold.