Accounting & Finance · Cost-Volume-Profit

The Break-Even Ledger

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price p $/unit
$8$24
fixed cost F
$0$24k
variable v $/unit
$2$20
break-even q*
600 u
profit @ 1,000
$4,000
margin of safety
40%
op. leverage
2.50×
contrib. p−v
$10.00