Answer Book question
The level of sales at which you neither make nor lose money: fixed costs divided by the contribution per unit (price minus variable cost). Knowing it tells you how much you must sell every month just to survive. and whether that number is realistic for your market.
The level of sales at which you neither make nor lose money: fixed costs divided by the contribution per unit (price minus variable cost). Knowing it tells you how much you must sell every month just to survive. and whether that number is realistic for your market.
Fixed costs ₹1.2 lakh a month. Each unit sells for ₹200 and costs ₹120 to make. Contribution ₹80. Break-even: 1,500 units a month. The owner's market research suggests 900 units. The business cannot work at this cost structure.
Break-even forces the conversation between costs and demand. If the break-even volume exceeds plausible sales, change the costs, the price, or the idea.
Fixed costs including your own salary and EMI Variable cost per unit Price the market will actually pay Plausible volume Months to reach break-even and cash to survive them
Leaving out your own salary and the loan EMI from fixed costs.
Kerala Rising's Opportunity Check runs break-even against evidence of demand, not hope.
1,500 units needed; 900 plausible → not viable as designed.
None.
Compute it Compare to evidence Redesign if needed
What is DSCR and why does the bank care? I saw a machine on Instagram. Is the business viable?
Opportunity Check · Start or grow a business
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