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CH13-EX01. BEP Calculation Example — Simple Positive Contribution Margin Case

  • Related Chapter: CH13. BEP — Break-Even Point
  • Related Tool: BEP (core/engine/modes/bep.py, run_bep)
  • Source: docs/features/bep/CASE.md, TC1 (“simple positive CM”). A hand-calculation verification case using hypothetical data (client_id: sample_co_zeta) — not actual client data.

Inputs

ItemValue
N (net_sales_ex_vat)1,000
product_service_direct_cost (direct_cost)400
variable_selling_delivery (fixed-amount item)100
fixed_operating_cost (component-scoped, applies_to_component: “main”)50,000
fixed_operating_cost.basisper_month

Exercise

Using the inputs above, work out the following yourself.

  1. What is the contribution margin per unit (CMu)?
  2. What is the break-even sales quantity (Q_BEP) that recovers the monthly fixed operating cost?
  3. For which period should this quantity be read?
Show answer and walkthrough

What This Example Illustrates

This example shows the most basic normal path of the BEP calculation (CMu > 0, FC > 0). It demonstrates how the formula Q_BEP = FC / CMu produces a normal break-even sales quantity when the per-unit contribution margin is positive and fixed operating cost exists.

Calculation

CMu = N − direct_cost − variable_cost_total
    = 1,000 − 400 − 100
    = 500


FC = 50,000 (component-scoped, OK)


Q_BEP = FC / CMu
      = 50,000 / 500
      = 100

Result

  • contribution_margin_per_unit = 500, status: OK
  • fixed_operating_cost = 50,000, status: OK
  • break_even_quantity_exact = 100, status: OK
  • module status: OK

Interpretation

At the current price (N=1,000) and cost structure (direct cost 400, variable cost 100), this component earns a per-unit contribution margin of 500. To recover the monthly fixed operating cost of 50,000, 100 units must be sold per month to reach break-even. Since basis: "per_month", this 100 units should be interpreted as a “monthly” sales target — the unit of break_even_quantity_exact is simply a quantity unit (“units”) and does not represent a period; quantity and period (analysis_period_basis) are treated as separate pieces of information (see SPEC.md §4 REVISED).