A fixed cost is an expense that does not vary with sales. These are costs that are incurred whether or not any sales are made. A variable cost is an expense that varies directly with sales. Variable costs are incurred only if sales are made. If you are unsure about whether an expense is fixed or variable, be conservative and mark it fixed. Marking a cost as fixed, rather than variable, causes your break-even point to be higher. If some of your costs are mixed, enter the amount that is variable into a variable area, then enter the fixed amount into the "Total Other Fixed Expenses" area.
In this analyser, we assume that Cost of Goods Sold is variable. If you don't have Cost of Goods Sold on your financial statements, leave this field blank.
If your product can be measured in just one type of unit - such as yards, customer transactions, or hours - enter either the number of units sold or the unit sales price.