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Xearno MBA Toolsfinance · pricing · operations

Break-Even

Classic cost-volume-profit analysis: contribution margin, break-even units and revenue, margin of safety if you supply current volume, and the leverage a price change has on all of it.

The numbers

Break-even units / month
741
Break-even revenue / month
33,333
Contribution margin
27.00 (60%)
per unit, after variable costs

The operator’s read

Worth knowing

Price leverage: a 10% price increase cuts break-even from 741 to 635 units (−14%). Small price moves shift break-even far more than equal cost cuts.

Methodology

Contribution margin = price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin; break-even revenue = break-even units × price.

Margin of safety = (current units − break-even units) ÷ current units — the demand cushion before losses begin.

Assumes linear costs and a single price point. Mixed products need a weighted-average contribution margin; step-fixed costs (e.g. a second shift) break the linearity at scale.

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/break-even \
  -H 'content-type: application/json' \
  -d '{"fixedCosts":20000,"price":45,"variableCost":18,"currentUnits":0}'

Schema: GET /api/v1/tools/break-even · MCP tool name: break_even

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