Garment Factory Break-Even Volume Calculator — Production Target
Calculating factory break-even production units ensures that monthly operating costs are covered before setting sales growth and profit targets.
What is Garment Factory Break-Even Volume?
Calculating factory break-even production units ensures that monthly operating costs are covered before setting sales growth and profit targets.
Formula
Break-Even Volume (Pieces) = Monthly Fixed Factory Overhead ($) / (FOB Selling Price − Variable Material Cost per Piece) Break-Even Revenue = Break-Even Volume × FOB Selling Price
How to Calculate
Subtract unit variable material and process cost from FOB unit price to get contribution margin, then divide total monthly fixed overheads by unit contribution margin.
Example
Monthly Fixed Overhead = $25,000, FOB Price = $8.00, Variable Cost = $4.50 → Contribution Margin = $3.50 → Break-Even Volume = 25,000 / 3.50 = 7,143 pcs / month ($57,143 revenue).
Frequently Asked Questions
Building rent, executive and staff administrative salaries, facility insurance, equipment leasing, and basic utility baseline costs.