1. Enter fixed bar costs
Include costs that remain even if attendance changes, such as a base rental or minimum setup charge.
2. Enter revenue per guest
Use the amount of bar-related revenue, reimbursement, or allocated contribution generated by each attendee.
3. Enter variable cost per guest
Include beverage and service costs that increase for each additional attendee.
4. Check contribution margin
Break-even is possible only when per-guest revenue is greater than per-guest variable cost.
5. Review break-even attendance
The result rounds up to the first whole guest count where modeled revenue is at least as large as modeled cost.