Breakeven units = fixed costs/ (price – variable cost per unit) This makes sense. Price minus variable cost per unit is the amount of money you have to cover fixed costs each time you sell a unit.

A variable cost is an expense that changes in proportion to increases and decreases in production or sales volume.

To calculate the cost to run an air conditioner for one hour, consider the unit’s wattage, the average cost of electricity in your state and the number of hours your unit runs daily.

Average revenue per unit is a metric used by companies that offer subscription-based products and services, such as mobile phone carriers and.