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The Break Even Calculator by Profits Plus

Knowing how many you have to sell before you make a profit is not as simple as it looks. It definitely is not calculating how many of an item you have ordered, the total cost of that item, and then multiplying a quantity sold by the selling price. What has to be considered are the fixed and variable expenses associated with the business.

Your fixed expenses are those that are definitely going to occur each month. The amount may vary, as exampled by utilities, but the expense is definitely is going to occur. Your variable expenses are those that may or may not occur during the month. This calculator allows you to factor all of these components as you determine just what it does take to get to the point of breaking even.

Break Even Calculator - by Profits Plus  
         
(yellow indicates an input cell)        
         
This can be a monthly or annual calculation: Method 1 with   Method 2 with  
  known cost of item   known item gross margin  
Add all fixed costs:        
   
   
   
   
   
   
   
   
   
   
Total all fixed costs:    
         
Add all variable costs:        
Gross margin of product      
   
   
   
   
   
Total all variable costs:    
         
Total sales:    
         
Variable cost as a percentage:    
         
Net Profit:    
         
Sales necessary to produce a break even point        
with this variable cost and fixed expense level:    
         
         
Break even sales    
         
Variable costs    
Fixed costs    
Total costs    
         
Profit    
         

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Profits Plus Solutions, Inc.
PO Box 1577
St. Petersburg, Fl 33731
(727) 464-2182
Fax: (727) 898-3179