How Do You Calculate Operating Profit With Break Even Point?
To calculate operating profit with break-even point, you first need to determine the break-even point by dividing total fixed costs by the contribution margin per unit. Once you have the break-even point, you can calculate the operating profit by subtracting fixed costs and variable costs from total revenue. If your operating profit is below the break-even point, you are operating at a loss. If it is above the break-even point, you are making a profit.