Costs & breakeven point in unit’s tool
The break-even point in units will tell you exactly how many units you need to sell to turn a profit. If
you’re able to sell more units beyond this point, you’ll be making a profit. If you’re unable to sell enough
products or services to meet this point, then the organisation will be losing money.
Innovation (Product)………….…………………………………………………………………………………………………………………
Fixed costs
1. Labour
How long does it take to produce one unit (in hours)?
How many persons responsible for production activities and their hourly wage?
2. Electricity (percentage of the company’s total electricity bill)
 Estimate electricity cost for the workshop on a monthly basis?
 What is the daily average Electricity consumed by the workshop?
 What is the Average Hourly Electricity consumed by the workshop?
TOTAL FIXED COST PER UNIT…………………………………………………………………………………………………………….…..
Variable costs
1. Estimate Cost of raw materials per unit
Materials (mm)
Quantity used (mm)
Estimate Cost (USD)
2. What is the estimate of monthly machine repair and maintenance costs?
TOTAL VARIABLED COST PER UNIT: …………………………………………………………………………………………………..….
TOTAL COST OF PRODUCTION PER UNIT: ………………………….....................................................................
Break-even point in units = Fixed costs ÷ (Sales price per unit – Variable cost per unit)