Hello,

I am working on a project that requires a breakeven analysis and I have a question...

I understand the formula of fixed costs/unit contribution, but I was wondering how you deal with one-time investment costs and recurring fixed costs.

Certain fixed costs will only occur once (or very rarely), such as purchasing a vehicle, office equipment etc. but some of them recur every month such as rent, interest etc.

Would i include the initial investment costs in the first years breakeven with the recurring costs, or are they accounted for seperately?

Please help me out

Thanks