Sales Mix Break-Even Calculator

How the sales mix break-even calculator works

A basket contains the entered whole counts of product A and B. Unit prices and variable costs round to cents first. Basket contribution adds each product count × its unit contribution; basket revenue adds each count × its price. Dividing contribution by basket units gives a weighted per-unit figure, while the basket itself preserves the intended whole-unit ratio.

Break-even baskets are fixed costs divided by positive basket contribution, rounded upward. Target baskets replace fixed costs with fixed costs plus target profit. A basket must contain at least one unit. Nonpositive contribution cannot cover a positive required amount; zero required cost needs zero baskets.

The model assumes a stable sales mix and unrestricted proportional sales of the basket. It does not infer demand, optimize product selection, test production capacity or treat sales mix as causal evidence. A different mix needs a new scenario rather than reusing the old weighted contribution.

Worked example

Two A units at 100 less 60 cost contribute 80; one B at 50 less 30 contributes 20. The basket contributes 100 and earns 250 revenue. Fixed costs of 1,000 need ten baskets and 2,500 revenue. A 500 profit target needs fifteen baskets. Raising fixed costs to 2,000 raises break-even to twenty baskets.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• SBA: business cost and financial planning
• Shopify: profit, net sales and cost definitions