Break even analysis

A company 's breakeven point is the point at which its sales exactly cover its expenses.

Break-even point refers to the revenues needed to cover a company 's total amount of fixed and variable cost during a specified period of time (accountingcoach, 2016)

Breakeven point= Fixed Costs ÷ (Price - Variable Costs)

Break-Even Analysis

[Date] © 2009 Vertex42 LLC HELP For the Period: Jan 1, 2009 - Jun 30, 2010 Edit the highlighted blue cells Selling Price (P): $ 5.00

Break-Even Units (X): 16,276 units Break-Even Sales (S): $ 81,379.31 [42] Fixed Costs Advertising $ 1,000.00 Accounting,
*…show more content…*

e Taxes (NIBT) $ - Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) 16,276 units Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR $ 81,379.31 Rate of return on sales before taxes = NIBT / S 0.0% Tax Rate (T) 25% Net Income After Taxes (NIAT) = (1-T)*NIBT $ - Rate of return on sales after taxes = NIAT / S 0.0%

Chart

Units (X) Fixed Cost Total Cost Total Revenue Profit (Loss) 0 59,000.00 59,000.00 - (59,000.00) 1627.6 59,000.00 61,237.95 8,138.00 (53,099.95) 3255.2 59,000.00 63,475.90 16,276.00 (47,199.90) 4882.8 59,000.00 65,713.85 24,414.00 (41,299.85) 6510.4 59,000.00 67,951.80 32,552.00 (35,399.80) 8138 59,000.00 70,189.75 40,690.00 (29,499.75) 9765.6 59,000.00 72,427.70 48,828.00 (23,599.70) 11393.2 59,000.00 74,665.65 56,966.00 (17,699.65) 13020.8 59,000.00

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