The break-even point can be calculat in different ways. Everything will depend on the goals, as well as the data you know. In addition to the above, to calculate : production volume in natural units: in pieces, kilograms, liters; Variable cost per unit: all variable costs or the quantity of output produc. Break-even point formula: types and calculation options In practice, to analyze the position of any business, two options for calculating the break-even point are us: in physical and monetary terms.
Let’s look at each of them in more detail
In kind The main way to quickly calculate the breakeven point is in physical terms. You can calculate how many kilograms, liters or pieces of goods you ne to sell philippines phone number library in order to cover all variables, as well as fix costs. Let us emphasize that this method is us only if you have a single-production. That is, only one product or one service. To calculate the break-even point in physical terms, use the algorithm: First, you ne to calculate and record all fix costs when selling goods.
Next calculate all variable costs
And divide them by the quantity of products produc to get the variable costs per unit of goods. Calculate the margin per unit of goods. To do this, subtract the variable costs per unit of goods from the price per unit of goods. Find the TBU using the prepar formula. To learn how to calculate your company’s ROI understand the logic of applying the formula to calculate the breakeven point, additional data is ne. Let’s look at an example. From the example it is clear that the entrepreneur nes to sell 6 tables for a total of 102,000 rubles to reach the break-even point.
In monetary terms
If you have a multi-profile business, you sell several different buy lead products or services, then you do not ne to calculate the break-even point separately for each. In such cases, the entire range of goods is equat to conventional units or monetary equivalent. And the break-even point is calculat for each product in total. In this case, the break-even point calculation is a little more difficult to use.
