Calculate break-even based on Common Fixed, Direct Fixed, and Direct Variable Costs.
Definition: These are costs that remain constant in total, regardless of production volume, and benefit multiple product lines. They are *indirect* costs to the product.
Allocation: These total costs are allocated to individual products in this simulation based on their respective Sales Mix percentage.
Examples: Rent for the main office, CEO's salary, corporate insurance, or shared facility utilities.
Category 2: Direct Product Fixed Cost (Total $): Costs that remain constant for a specific product line, regardless of its production volume (e.g., specialized machine lease, product manager salary, dedicated warehouse space).
Category 3: Direct Product Variable Cost (per unit): Costs that change in total directly and proportionately with the volume of production for a specific product (e.g., raw materials, direct labor, packaging, sales commission per unit).
| Product | Price (P) | Cat 1: Allocated Common Fixed Cost |
Cat 2: Direct Prod. Fixed Cost (Total $) |
Total Product Fixed Cost (1 + 2) |
Cat 3: Direct Prod. Variable Cost (per unit) |
Sales Mix (%) | CM (P-V) | Weighted CM |
|---|
Total Fixed Costs Calculation
Weighted Avg. Contribution Margin (WACM)
$45.00
Total Break-Even Units
18,889
Total Break-Even Revenue
$1,638,889