How does the decoration company calculate the break-even point?

Revenue-(fixed cost+variable cost) = profit

The breakeven point is calculated when the profit is zero.

So it is: revenue-(fixed cost+variable cost) =0.

Namely: revenue-fixed cost = variable cost.

For example, the unit sales price of each product is 10 yuan, the material cost is 5 yuan, and the fixed cost (rent, management fee, etc. ) is 20 thousand yuan, so how much output is needed to break even?

10*Y-20000=5*Y Y=4000, so you will make a profit only if the output is higher than this amount, and you will lose money below this amount. So the break-even point of this product is 4000.

This is idealistic. In reality, fixed costs such as the depreciation of machinery, the rent of the site, the salary of managers, and variable costs such as the material cost of products, piece-rate wages and taxes. In fact, there are variable costs, such as utilities and maintenance. .....