Analysis for calculating when a business will have paid itself.

It is necessary to find the unit contribution margin  $$M$$ in order to find the breakeven point. You find the margin by subtracting the variable cost per unit  $$C_v$$ from price per unit  $$P$$ .

$P-C_v=M$

If the investment put into the business  $$I$$ is then divided by the unit contribution margin found before, the breakeven volume $$B_v$$ can be found or in other words, the number of units the business needs to sell before it has paid back all the fixed cost.

$A/M=B_v$

After this point, the revenue will be a profit minus the variable cost.

The breakeven revenue $$B_r$$ can be found by multiplying the breakeven volume $$B_v$$ with the selling price

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