The Break Even Sales Point Formula can be used to determine at which level of sales a business must reach in order to cover all costs associated with running the organization. To calculate the break-even point, you need to know the fixed costs (costs that remain the same regardless of how much you sell) and the variable costs (costs that change based on how much is sold). Once you have those two numbers, you then divide your fixed costs by the difference between the unit price and the unit cost. This will tell you how many units your business needs to sell in order to break even! By using this formula, businesses can identify what level of sales they must consistently maintain in order to stay profitable.