How do you calculate a variable cost for break even?

Question

how do you calculate or find a variable cost when you try to calculate a break-even?

Answer 1

Break even analysis depends on the following variables:

The fixed production costs for a product.

The variable production costs for a product.

The product's unit price.

The product's expected unit sales [sometimes called projected sales.]

On the surface, break-even analysis is a tool to calculate at which sales volume the variable and fixed costs of producing your product will be recovered. Another way to look at it is that the break-even point is the point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company.