Sales Mix Break-Even
Check unit shares.
Estimated reading time: 1 minute
Stripe’s guide explains that multiple-product break-even depends on the sales mix, not merely total units.
Fictional monthly business: A sells for $30 with $10 variable cost; B sells for $20 with $10 variable cost. Their contributions toward fixed costs are $20 and $10 per unit. Fixed operating costs are $6,000.
At a 50:50 unit mix, average contribution is $15. Break-even requires $6,000 ÷ $15 = 400 units: 200 A and 200 B.
Suppose the mix instead becomes 20% A and 80% B. Average contribution falls to $12. Selling the same 400 units produces $4,800 contribution, leaving a $1,200 operating loss.
The revised break-even is 500 units: 100 A and 400 B contribute $2,000 + $4,000 = $6,000.
These are unit shares, not revenue shares. Assume constant prices and costs, sufficient capacity and no inventory changes. This operating test excludes financing and taxes; it does not establish payment-date liquidity. Validate demand for the required mix before relying on the total-volume target.
