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Dipesh Pimpale

Data Analytics | 𝐀�... • 11m

Imporant metric for Start-ups - Break Even Units Suppose we are a shoe brand and we want to calculate our units to be sold for break even (No profit No Loss) Fixed Cost - 4,00,000 Selling Price per Unit - 1200 Variable Cost per Unit - 800 Contribution per Units = (Selling Price per Unit) - (Variable Cost per Unit) Or CU = 1200 - 800 = 400 BEU = Fixed Cost / Contribution per Units BEU = 4,00,000 / 400 = 1000 (Units to be sold for Break even)

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