Build a break-even target your team can actually use

Separate fixed and variable costs

Break-even volume equals fixed costs divided by contribution per sale. Contribution is selling price minus the costs that rise with each sale.

Putting a variable cost into the fixed-cost total—or leaving fulfilment costs out—can materially distort the target.

Make the output operational

A monthly unit figure becomes more useful when translated into the way the team works.

• Convert the monthly target into weekly and daily targets.
• Add a profit target above break-even rather than treating zero profit as success.
• Recalculate after price, supplier-cost or product-mix changes.