Unit Economics & Break-even
Parameters
Break-even point
250 units
€ 125.000 revenue
Contribution margin / unit€ 200 (40.0%)
Units for target profit350
Profit at planned volume€ 10.000
Net margin6.7%
Margin of safety16.7%
Break-even = fixed costs / (price − variable cost). Margin of safety — how much volume can drop before losses.