financial_analyzer.breakeven_point
Module Contents
Functions
|
Calculate the break-even point in units, with given set of cost and revenue parameters. |
- financial_analyzer.breakeven_point.breakeven_point(fixed_costs, sales_price_per_unit, variable_cost_per_unit)[source]
Calculate the break-even point in units, with given set of cost and revenue parameters.
- Parameters:
fixed_costs (float) – Total fixed costs in the problem, given as a float.
sales_price_per_unit (float) – The selling price of each unit in the problem, given as a float.
variable_cost_per_unit (float) – The variable cost of each unit in the problem, given as a float.
- Returns:
The break-even point in units for the given parameters.
- Return type:
float
Examples
Context: You are selling paintings, your fixed costs are $5,000/month, each painting is sold for $20, the variable costs (materials) for each painting are $10. What is your break even point? >>> fixed_costs = 5000 >>> sales_price_per_unit = 20 >>> variable_cost_per_unit = 10 >>> break_even_units = breakeven_point(fixed_costs, >>> sales_price_per_unit, >>> variable_cost_per_unit) >>> print(break_even_units) 500