The break-even point can be calculated using the following formula: Break Even Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Where:
Fixed Costs: These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance. Variable Costs: These costs vary with the level of production or sales, such as raw materials and direct labor. Selling Price per Unit: The price at which each unit is sold.