Contribution is the starting point.
Selling price less variable cost gives the contribution from each sale. Fixed costs divided by contribution gives break-even units. Add the target profit to fixed costs to calculate the required sales volume. Results round up to whole units.
Use a consistent basis.
Include costs that rise with each sale in variable cost. Include rent, subscriptions and other ongoing overheads in fixed cost. Use one product or a realistic average sales mix. Keep VAT treatment consistent across your inputs.
Put the numbers to work.
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