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follow me follow me follow me what youve got to do youve got to calculate what your fixed expenses are lets say its fifteen thousand dollars a month lets say for easy math that you marked up by 43 it created a profit margin of 30 you would then take 15 000 and you would divide that by your 30 profit margin which would equal 45 000. so what it does is that tells you what your break-even point is I dont care whether youre on Cost Plus youre on fixed price this is what it will tell you about