Contribution & Break-EvenThe volume at which a business stops losing money.Accounting & FinanceBreak-even volume equals fixed costs divided bycontribution per unit.Contribution = Price − Variable cost · BEP = Fixed ÷ Contribution£10 price, £6 variable£4 contribution£20,000 fixed costs5,000 units to break evenTarget profit £8,0007,000 units(20,000 + 8,000) ÷ 4.THE COMMON MISTAKETreating contribution as profitIt contributes to fixed costs firstOnly after fixed costs are fully covered does further contribution become profit.Below that point it reduces the loss.The margin of safety is how far sales can fall before losses begin,usually stated as a percentage of current sales.Contribution & Break-Evenlearnposters.com
Contribution & Break-Even — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

What’s on the Contribution & Break-Even poster

The rule, 3 worked examples, and the mistake everyone makes.

The margin of safety is how far sales can fall before losses begin, usually stated as a percentage of current sales.

Questions about the Contribution & Break-Even poster

What’s on the Contribution & Break-Even poster?
The rule, 3 worked examples, and the mistake everyone makes. Break-even volume equals fixed costs divided by contribution per unit.; Contribution = Price − Variable cost · BEP = Fixed ÷ Contribution; £10 price, £6 variable = £4 contribution; £20,000 fixed costs = 5,000 units to break even; Target profit £8,000 = 7,000 units; Common mistake: Treating contribution as profit → It contributes to fixed costs first. The margin of safety is how far sales can fall before losses begin, usually stated as a percentage of current sales.
Who is the Contribution & Break-Even poster for?
Contribution & Break-Even belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning management accounting can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the Contribution & Break-Even poster?
Contribution per unit covers fixed costs first. Profit starts after that. A wall chart earns its place by being glanceable from where the work is happening, so Contribution & Break-Even belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with Contribution & Break-Even?
Absorption vs Marginal Costing, Activity-Based Costing and Budgeting sit alongside Contribution & Break-Even in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Absorption vs Marginal CostingActivity-Based CostingBudgeting
Is the Contribution & Break-Even poster free to download and print?
Yes. Contribution & Break-Even downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the Contribution & Break-Even poster print at?
Contribution & Break-Even is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Contribution & Break-Even loses nothing.Printing guide

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