THE PLAYGROUND
The break-even frontier
Volume matters only 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 units = 4000 / (50 − 30) = 200 (200 whole units)
READ THE MECHANISM
Contribution pays for fixed costs before it creates profit. If variable cost exceeds price, each additional sale makes the loss larger. The straight-line model applies only while price, cost behavior and capacity assumptions hold.
Model assumptions & units
One product, constant price and unit variable cost, fixed costs unchanged within the modeled range. Capacity constraints, step costs and mix changes are excluded. Round break-even units up when only whole units can be sold.