View "Pricing and Breakeven Analysis." A break-even analysis can be used to determine the amount of sales volume a business needs to start making a prot. List the formula used to conduct a break-even analysis and explain each component. Provide a real-world example of how the break-even analysis and formula could be applied. In replies to peers, discuss other marketing math methods that could be employed by the business as it tracks protability. The overall idea behind break even analysis is to calculate the point at which your revenues begin to exceed your costs. Break-even is calculated by using the following formula: fixed costs/(unit selling cost- variable cost). Fixed costs will remain the same over a long period of time. Some common examples of a fixed cost are rent, insurance, or loan payments. The unit selling price describes the actual price that the supplier intends to sell the item for. A variable cost is one that is liable to change based on demand of items needed for manufacturing, labor, and utilities. An example of break-even analysis would be, Imo's Pizza has a monthly fixed cost of $6,000, a variable cost to make each toasted ravioli order of $6.00 and then the selling price for each ravioli order is $10.00. $6,000] (10.00 - 6.00) = 1,500 ravioli orders must be sold per month for lmo's Pizza to break even