Breakeven Sales Volume

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Breakeven sales volume, abbreviated as BSV, is the amount of product that you will need to produce and sell to cover total costs of production.

 

Breakeven Sales Volume Formula

\(\large{ BSV =  \frac{ FC }{ SP \;-\; VC }   }\)  

Where:

\(\large{ BSV }\) = breakeven sales volume

\(\large{ FC }\) = fixed cost

\(\large{ SP }\) = selling price

\(\large{ VC }\) = variable cost per unit

 

Tags: Equations for Manufacturing