• OE is the operating expenses ($) • GM is the gross margin (%) ## How to Calculate Break Even Revenue? The following example problems outline how to calculate Break Even Revenue. Example Problem #1: 1. First, determine the operating expenses ($). In this example, the operating expenses ($) is given as 324. 2. Next, determine the gross margin (%). For this problem, the gross margin (%) is given as 30. 3. Finally, calculate the Break Even Revenue using the equation above: BER = OE / (GM/100) The values given above are inserted into the equation below: BER =324 / (30/100) = 1080 ($)

Example Problem #2:

The variables needed for this problem are provided below:

operating expenses ($) = 512 gross margin (%) = 60 Entering these values and solving gives: BER = 512 / (60/100) = 853.33 ($)