# Break-Even Analysis Excel example

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Here is the basic calculation:
1 will cost you to produce, and you will sell it for
Your fixed costs (also known as overhead) is going to be 25,000
First, calculate the contribution margin of each widget

Sales price
The unit cost of sale (COGS)
Now divide you fixed costs by the contribution margin

Fixed costs divided by the contribution margin 25,000/ 5",=,"5,000 units,or 45,000 in sales" An alternative method is to use,Fixed costs/(1-cost of goods as a percentage of sales 4 cost of goods/ 9 sales) While the two methods do not match exactly, this is due to rounding. The important piece is that they are very similar and give you a good estimate,, of what you need for sales..

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