The Break-Even Point (BEP) is the exact operational volume where total revenues equal total costs. At this activity level, the business makes zero profit but suffers no financial loss. 

To find the number of units a company must sell to break even, divide total fixed costs by the contribution margin per unit:

Break-Even Point (Units) = Total Fixed Costs ÷ Contribution per Unit

To find the total sales revenue needed to break even, divide total fixed costs by the C/S ratio:

Break-Even Sales Revenue ($) = Total Fixed Costs ÷ C/S Ratio

If a company wants to achieve a specific target profit, it adds that target amount to its fixed costs before running the calculation:

Required Sales (Units) = (Total Fixed Costs + Target Profit) ÷ Contribution per Unit