A LITTLE GUIDANCE
Production Break-Even Calculator guide
Plan a product run where the entire batch is made before sales begin.
How to use
- Enter production quantity, unit manufacturing cost and fixed setup costs.
- Add the selling price, selling fee and extra cost per sale.
- Change expected units sold to compare break-even quantity and sellout profit.
Worked example
- Input
- Make 100 units at 10,000 KRW each with 200,000 KRW fixed costs; sell at 20,000 KRW with no selling fees or extras.
- Result
- Upfront cost is 1,200,000 KRW, break-even is 60 units and sellout profit is 800,000 KRW.
Common questions
Are unsold units included in production costs?
Yes. The calculation charges production costs for the entire batch upfront, including units that remain unsold.
What if break-even units exceed the batch size?
Selling the full batch would not recover the entered costs. Compare different prices or production costs.