LinkedIn Learning

Running a Profitable Business: Calculating Breakeven


  • Finance & Getting Investor Ready
  • Skills Development
About this resource

Starting a business can be pricey. Breakeven analysis and cost-volume-profit analysis will help you understand when—and if—your business will start to recover those costs and begin making a profit. Understanding your breakeven point will help you to determine how much you need in revenue to keep your business going. Accounting professors Jim and Kay Stice walk through the breakeven equation, and cover types of costs, contribution margin, breakeven point, and net income. They also explain what each term means, and the importance of each, and offer examples from popular real-world companies.

What you'll learn:

  • Breaking down fixed and variable costs
  • Pricing a service to cover costs
  • Identifying high contribution margins
  • Calculating a company's breakeven point
  • Conducting breakeven analysis with breakeven equations
  • Computing target net income
  • Exploring sensitivity analysis
LinkedIn Learning

Get in touch with LinkedIn

For more information about how to use this tool or for further resources and support from LinkedIn, you can get in touch here.

Contact view profile

Related Resources

  • The Cloud Toolkit
    Recommended
    Microsoft LogoMicrosoft
    The toolkit provides non-technical entrepreneurs and small businesses with the know how on adopting cloud technology.
    • Digital Transformation
    • General Business Support
    • Skills Development
  • SkillsLab
    Recommended
    Microsoft LogoMicrosoft
    An Apprenticeship programme to upskill talented youth and address the digital skills gap in the industry.
    • Digital Transformation
    • Leadership & Coaching
    • Skills Development
  • EY consulting services
    Recommended
    EY
    EY professionals provide hands-on or virtual services on a not-for-profit basis to help impact enterprises respond to COVID-19.
    • Digital Transformation
    • Finance & Getting Investor Ready
    • General Business Support
    • Getting Corporate Ready
    • Leadership & Coaching
    • Sales & Marketing
    • Skills Development
    • Strategic Support
    • Supply Chain

More from This Contributor