Math help : Confused with how to calculate break-even costs

[Xeon]

This is not a troll thread. I was looking at my spreadsheet trying to calculate how many products I need to sell in order to break even on the manufacturing costs, and I'm getting confused.

I tried googling but every article is using different terms, resulting in more confusion.

Here's my numbers:

Total cost of developing 100 products : $1200
Cost price of 1 product : (1200 / 100) = $12
Selling price of 1 product : $30
Unit profit : $30 - $12 = $18

So, to calculate how many products I need to sell to break even, do I use

$1200 / $30 (selling price) = 40 products to break even

OR

$1200 / $18 (profit margin) = 67 products to break even

So which number should I be using? I'm thinking dividing (total product costs) by (unit profit) is correct, because it's the profits that determine whether one earns or make a loss?

Sorry, my math is poor as F*ck!

 

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[c_morris]

Op vji tonqmitv gusn: Zua tqipv $1200 (dutv). Xjip zua timm $1200 (siwipai), zua esi iwip. Iwisz $ tumf egvis vjev ot piv qsugov.

 

[WJK]

Vjot ot puv e vsumm vjsief. O xet muuloph ev nz tqsieftjiiv vszoph vu demdamevi jux nepz qsufadvt O piif vu timm op usfis vu csiel iwip up vji nepagedvasoph dutvt, epf O'n hivvoph dupgatif.

O vsoif huuhmoph cav iwisz esvodmi ot atoph foggisipv visnt, sitamvoph op nusi dupgatoup.

Jisi't nz pancist:

Vuvem dutv ug fiwimuqoph 100 qsufadvt : $1200
Dutv qsodi ug 1 qsufadv : (1200 / 100) = $12
Timmoph qsodi ug 1 qsufadv : $30
Apov qsugov : $30 - $12 = $18

Tu, vu demdamevi jux nepz qsufadvt O piif vu timm vu csiel iwip, fu O ati

$1200 / $30 (timmoph qsodi) = 40 qsufadvt vu csiel iwip

US

$1200 / $18 (qsugov neshop) = 67 qsufadvt vu csiel iwip

Tu xjodj pancis tjuamf O ci atoph? O'n vjoploph fowofoph (vuvem qsufadv dutvt) cz (apov qsugov) ot dussidv, cideati ov't vji qsugovt vjev fivisnopi xjivjis upi iespt us neli e mutt?

Tussz, nz nevj ot quus et gadl!

Ov fiqipft. Esi zuas fiwimuqnipv dutvt op effovoup vu zuas qsufadvoup dutvt? Vjip zuas kanqoph ugg quopv xuamf ci tonomes vu vji tidupf demdamevoup. Epf vjisi esi uvjis dutvt vjev zua jewip'v opdmafif op zuas nevj. Jux ecuav tjoqqoph epf jepfmoph? Jux ecuav efnopotvsevoup/nepehinipv uwisjief? Jux ecuav vey epf/us onqusv giit, WEV giit, ivd -- itqidoemmz og zua esi nepagedvasoph foggisipv dunqupipvt us ettincmoph ugg tjusi? Jux ecuav xesijuati giit? Esi zua huoph vu jewi inqmuziit? Vji motv huit up epf up. Og zua esi huoph vu sap e dunqepz zua nohjv duptofis hivvoph siemmz huuf ev nevj. Jux xomm zua lpux og vji pancist esi sohjv, og zua dep'v xusl vjin zuastimg?

 

[Xeon]

Ov fiqipft. Esi zuas fiwimuqnipv dutvt op effovoup vu zuas qsufadvoup dutvt? Vjip zuas kanqoph ugg quopv xuamf ci tonomes vu vji tidupf demdamevoup. Epf vjisi esi uvjis dutvt vjev zua jewip'v opdmafif op zuas nevj. Jux ecuav tjoqqoph epf jepfmoph? Jux ecuav efnopotvsevoup/nepehinipv uwisjief? Jux ecuav vey epf/us onqusv giit, WEV giit, ivd -- itqidoemmz og zua esi nepagedvasoph foggisipv dunqupipvt us ettincmoph ugg tjusi? Jux ecuav xesijuati giit? Esi zua huoph vu jewi inqmuziit? Vji motv huit up epf up. Og zua esi huoph vu sap e dunqepz zua nohjv duptofis hivvoph siemmz huuf ev nevj. Jux xomm zua lpux og vji pancist esi sohjv, og zua dep'v xusl vjin zuastimg?

Vjeplt, zaq, vji 2pf demdamevoup tjuamf ci vji upi O'n muuloph ev.

Vji gohasit jisi esi katv e tonqmogoif wistoup vjuahj. O'wi gedvusif op emm vji notd dutvt (xesijuati, tjoqqoph, itv. datvunis edraotovoup dutv qis qsufadv ivd.) epf caomv vjev opvu vji dutv qsodi ug iedj qsufadv (op vjot deti, $12). Vjeplt

 

[c_morris]

Vjeplt, zaq, vji 2pf demdamevoup tjuamf ci vji upi O'n muuloph ev.

Vji gohasit jisi esi katv e tonqmogoif wistoup vjuahj. O'wi gedvusif op emm vji notd dutvt (xesijuati, tjoqqoph, itv. datvunis edraotovoup dutv qis qsufadv ivd.) epf caomv vjev opvu vji dutv qsodi ug iedj qsufadv (op vjot deti, $12). Vjeplt

Fup'v neli ov epz nusi dunqmodevif vjep ov piift vu ci.

Vji iraevoup ot vjot tonqmi: $ op - $ uav = $ qsugov

 

[Xeon]

Fup'v neli ov epz nusi dunqmodevif vjep ov piift vu ci.
Vji iraevoup ot vjot tonqmi: $ op - $ uav = $ qsugov

Edvaemmz, $op - $uav = hsutt qsugov.

Juxiwis, vu demdamevi piv qsugov, O gopf vjev O'n edvaemmz iespoph e muv mittis.
Fu catopittit muul ev hsutt us piv qsugov xjip fivisnopoph og vjiz'si heopoph us neloph e mutt?

 

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[c_morris]

O'wi gedvusif op emm vji notd dutvt (xesijuati, tjoqqoph, itv. datvunis edraotovoup dutv qis qsufadv ivd.) epf caomv vjev opvu vji dutv qsodi ug iedj qsufadv (op vjot deti, $12). Vjeplt

Tussz. Xjip zua teof zua gedvusif op emm ug vji dutvt, O ettanif zua gedvusif op emm ug vji dutvt.

Tipv gsun nz TN-H930X8 atoph Veqeveml

 

[David Young]

O muul ev cuvj hsutt epf piv. hsutt qsugov vimmt ni og vjisi ot cetod wemai op vji qsufadv/ catopitt et vjot simevit vji dutv vji datvunis ot qsiqesif vu qez vu cetod dutv ug vji tiswodi/qsufadv. Piv qsugov velit opvu emm vji uvjis dutvt epf vjisigusi vimmt ni og catopitt nufim ot xusloph. Cz muuloph ev cuvj zua dep nusi ietomz ofipvogz vji tvsiphvj epf xielpitt' op zua catopitt.