Transparent LED Screen Break-Even Point: $166K Monthly Revenue

Fixed costs $108.9K/mo Recurring burn base

Contribution margin 66.5% After variable costs

Break-even revenue $163.7K/mo Monthly target sales

Break-even timing Month 2 Model break-even point

Break-even calculator

Use this to test how monthly revenue, direct costs, and fixed overhead shape break-even for transparent LED display systems.

Lean Base Full

Monthly revenue Revenue is the top line that funds direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise with each display sold or installed. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $3,650,000 $5,408,000 revenue - $1,758,000 variable expenses

Margin ratio

67%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lean setup Heavier setup

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a transparent LED screen company?

Cost classification

Break-even is reliable only if fixed overhead stays in the numerator and sales-linked charges stay in contribution margin. Here, a few percentage points matter because first-year revenue is $14.765 million and break-even is modeled for Month 2.

Expense	Cost	Break-Even Treatment	Common Mistake
Showroom and HQ Lease	Fixed	Use $15,000 per month from Month 1 through Month 60 in fixed overhead.	Treating rent as a percentage of sales and understating early burn.
Marketing and Trade Shows	Fixed	Use $12,000 per month as recurring demand-generation overhead in the break-even numerator.	Moving the full budget below the line because trade shows feel optional.
Insurance and Licensing	Fixed	Use $4,500 per month as stable operating overhead across the model period.	Keying $45,000 per month and overstating the break-even hurdle.
Sales Commissions	Variable	Reduce contribution margin by 5.0% of revenue in the first year and 4.0% in the mature year.	Counting commissions as fixed sales payroll and overstating unit margin.
Shipping and Freight	Variable	Reduce contribution margin by 3.5% of revenue in the first year and 2.5% in the mature year.	Using one flat freight dollar per unit across products with very different prices.
Technical Support Allocation	Semi-variable	Include the 1.2% revenue allocation in margin, then watch support staffing as volume rises.	Burying support in payroll only and missing the revenue-linked service load.
Field Engineering Support	Semi-variable	Include the 1.3% revenue allocation as project activity scales with installations.	Treating field work as fixed professional services and overstating project margin.
Operating Payroll	Semi-fixed	Use first-year wages of $800,000 annually, then step payroll up as full-time roles expand.	Spreading all salaries per unit and hiding the hiring jumps tied to scale.

How does break-even shift from a lean retail mix to the base plan and the full-volume case?

Scenario table

Lean case is still short of fixed-cost cover, the base plan clears it, and the full case adds a wide cushion. The swing is how much retail install and event volume you book before overhead grows.

Planning cases only; one-time capex and working capital sit outside operating break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean retail install case	$125K	$43K	$109K	65.4%	($27K)	Still below break-even; volume needs to rise or costs need to fall.
Base Year 1 mix	$1.23M	$425K	$109K	65.4%	$696K	Clears break-even with room, so execution risk shifts to delivery.
Full Year 2 growth case	$2.73M	$945K	$109K	65.4%	$1.68M	Well above break-even; hold hiring until demand stays steady.

What breaks the break-even plan if sales slip or costs run hot?

Stress test

The base plan has a wide cushion, but break-even gets fragile if close rates slow, freight or install labor runs over, or fixed payroll and showroom costs creep up. The launch watchout is any unsigned pipeline below $166K a month.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$166K	$1.06M cushion	Base plan clears break-even by a wide margin.
Revenue shortfall	Monthly revenue falls 20% to about $984K.	$166K	$818K cushion	Still above break-even, but close rates must hold.
Fixed-cost pressure	Fixed overhead rises 25% to about $136K a month.	$208K	$1.02M cushion	Payroll, lease, and support costs eat buffer first.
Margin pressure	Contribution margin drops 10 points to 55.4%.	$197K	$1.03M cushion	Freight, labor, and discounting lift the floor fast.
Combined pressure	Revenue falls 20%, fixed overhead rises 25%, and margin drops 10 points.	$246K	$738K cushion	This is the launch case to watch if quotes, installs, and costs all slip.

What should the founder verify before signing the lease and funding the first build?

Founder checklist

The model shows break-even in Month 2, but don’t lock the $15K monthly lease or the $12K monthly marketing line until signed demand, install capacity, and supplier lead times are real. Month 1 still needs $1.014M in minimum cash, and the $1.02M capex plan is a separate cash call.

1Signed pipelineBefore lease

Get signed retail and event work before you add the showroom lease, or the fixed rent will outrun real demand.

2Burn rate$42.2K/mo

The lease, lab, insurance, cloud, services, and marketing total $42.2K a month before payroll, so check that booked work can fund the burn.

3Quote margin66.5%

Revenue-based COGS is 25.0%, and Year 1 sales plus shipping add 8.5%, so quotes need freight, labor, warranty reserve, and margin built in.

4Supplier leadBefore inventory

Confirm lead times, freight, and calibration support before you order inventory, and test install flow before you promise more event volume.

5Hire ramp$800K Y1

Stage hires against the $800K Year 1 payroll and the 2,180-unit Year 1 build, so support staff only grow when delivery can absorb them.

6Cash cushion$1.014M

Keep cash for the $1.014M Month 1 minimum and treat the $1.02M capex plan as separate, because equipment spend does not cover operating break-even.