break even chart
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Break Even chartTRANSCRIPT
© Copyright, 2010, JaxWorks, All Rights Reserved.
Break-Even Analysis
Break-Even Point (units) = 2,000 Break-Even Point ($'s) = $10,000
Total Fixed Costs TFC = $3,000 Formulas:Variable Cost per Unit VCU = $3.50 BEP (units) = TFC/(SPU-VCU)Sales Price per Unit SPU = $5.00 BEP ($'s) = BEP (units) * SPU
0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000
($5,000)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
TFC
TVC
TC
Sales
Profit
Enter your numbers in the TFC, VCU, and SPU cells.
Remember that VCU and SPU are per unit.
Break-Even Analysis
Time Unit priceUnit V.C Fixed CostMonth 45 35 2000
Units Sales V.Cost Contribution F.Cost Total CostNet Income
0 0 0 0 2000 2000 (2000.00)
50 2250 1750 500 2000 3750 (1500.00)
100 4500 3500 1000 2000 5500 (1000.00)
150 6750 5250 1500 2000 7250 (500.00)
200 9000 7000 2000 2000 9000 0.00
250 11250 8750 2500 2000 10750 500.00
300 13500 10500 3000 2000 12500 1000.00
350 15750 12250 3500 2000 14250 1500.00
400 18000 14000 4000 2000 16000 2000.00
450 20250 15750 4500 2000 17750 2500.00
500 22500 17500 5000 2000 19500 3000.00
BEP X BEP Y Label
200 9000
0= units* (Sales- Variable Cost) - Fixed Cost
Fixed cost = Units*(Sales-Variable Cost)
Units= Fixed cost/(Sales-Variable Cost)
BEP= F.C /(1-(V.C/SALES)
Break even units=200
0 100 200 300 400 500 6000
5000
10000
15000
20000
25000
9000
Sales F.Cost Total Cost Break even units=200
0 100 200 300 400 500 6000
5000
10000
15000
20000
25000
9000
Sales F.Cost Total Cost Break even units=200
Wavendon Plumbing: 6-Month Financial Projection
Number of Months 6
CALCULATE YOUR GROSS PROFIT
Projected Sales £75,000
Purchases (material costs) £32,500
Labour Costs £20,000
Gross Profit £22,500
Gross Profit Margin 30%
CALCULATE YOUR OVERHEADS
Indirect Costs
Business Salaries (including your own drawin £6,000
Rent £2,000
Rates £500
Light/Heating £500
Telephone/Postage £500
Insurance £500
Repairs £2,000
Advertising £1,500
Bank Interest/Hire Purchase £1,500
Other (eg depreciation of fixed assets) £1,500
Overheads £16,500
Break-Even Sales £55,000
Monthly Break-Even Sales £9,167
Profit (for 6 months) £6,000
Less Direct Costs
Break-Even Analysis
2007 2008 2009 2010
Sales ₹2,010,000.00 ₹2,060,000.00 ₹2,121,800.00 ₹2,391,800.00
Materials ₹320,000.00 ₹329,600.00 ₹339,488.00 ₹389,088.00
Labor ₹500,000.00 ₹515,000.00 ₹530,450.00 ₹545,450.00
Variable overhead ₹125,000.00 ₹128,750.00 ₹132,612.50 ₹186,362.50
Other ₹0.00 ₹0.00 ₹0.00 ₹0.00
Contribution Margin 1,065,000 1,086,650 1,119,250 1,270,900
Contribution Margin Ratio 52.99% 52.75% 52.75% 53.14%
Fixed Expenses
Salaries and wages ₹190,000 ₹190,000 ₹190,000 ₹190,000
Employee benefits ₹50,000 ₹51,500 ₹53,045 ₹54,545
Payroll taxes ₹30,000 ₹30,900 ₹31,827 ₹32,727
Rent ₹5,000 ₹5,150 ₹5,305 ₹5,455
Utilities ₹3,000 ₹3,090 ₹3,183 ₹3,273
Repairs and maintenance ₹1,000 ₹1,030 ₹1,061 ₹1,061
Insurance ₹1,000 ₹1,030 ₹1,061 ₹1,061
Travel ₹2,133 ₹2,197 ₹2,263 ₹2,263
Telephone ₹11,000 ₹11,330 ₹11,670 ₹12,670
Postage ₹4,000 ₹4,120 ₹4,244 ₹4,244
Office supplies ₹6,000 ₹6,180 ₹6,365 ₹6,365
Advertising ₹1,000 ₹1,030 ₹1,061 ₹1,061
Marketing/promotion ₹3,000 ₹3,090 ₹3,183 ₹3,183
Professional fees ₹1,000 ₹1,030 ₹1,061 ₹1,061
Training and development ₹1,000 ₹1,030 ₹1,061 ₹1,061
Bank charges ₹1,000 ₹1,030 ₹1,061 ₹1,061
Depreciation ₹1,000 ₹1,030 ₹1,061 ₹1,061
Interest Expense ₹6,000 ₹6,000 ₹6,000 ₹6,000
Other ₹0 ₹0 ₹0 ₹0
Total Fixed Expenses 317,133 320,767 324,510 328,150
Total Fixed Expenses Ratio 15.78% 15.57% 15.29% 13.72%
Break-Even Sales 598,533 608,089 615,185 617,570
Break-Even % 29.78% 29.52% 28.99% 25.82%
Operating Profit 747,867 765,883 794,740 942,750
Sales ₹2,010,000.00 ₹2,060,000.00 ₹2,121,800.00 ###Less: Variable Cost ₹945,000.00 ₹973,350.00 ₹1,002,550.50 ###
Contribution ₹1,065,000.00 ₹1,086,650.00 ₹1,119,249.50 ###
Less: Fixed cost ₹317,133.00 ₹320,766.99 ₹324,510.00 ₹328,150.00
Net Operating Profit ₹747,867.00 ₹765,883.01 ₹794,739.50 ₹942,749.50
Break even sales 598532.7042254 608089.08056872 615184.8335545 617569.81514
Time Unit price Unit V.C Fixed Cost
Less Variable Expenses
Month 45 35 2000
Month Sales V.Cost Contribution F.Cost
1 ₹300,000.00 ₹141,044.78 ₹158,955.22 ###
2 ₹598,532.70 ₹281,399.70 ₹317,133.00 ###
3 ₹900,000.00 ₹423,134.33 ₹476,865.67 ###
4 ### ₹564,179.10 ₹635,820.90 ###
5 ### ₹705,223.88 ₹794,776.12 ###
6 ### ₹846,268.66 ₹953,731.34 ###
7 ### ₹945,000.00 ### ###
8 ### ₹1,128,358.21 ### ###
9 ### ₹1,269,402.99 ### ###
Break Even 598,532.70₹ BEP=598532.7
0 1 2 3 4 5 6 7 8 9 10₹0.00
₹500,000.00
₹1,000,000.00
₹1,500,000.00
₹2,000,000.00
₹2,500,000.00
₹3,000,000.00
₹598,532.70
Break Even Chart
Sales Fixed Cost Total Cost BEP=598532.7
Total Cost Net Income
₹458,177.78 ###
₹598,532.70 -₹0.00
₹740,267.33 ₹159,732.67
₹881,312.10 ₹318,687.90
### ₹477,643.12
### ₹636,598.34
### ₹747,867.00
### ₹954,508.79
### ###
0 1 2 3 4 5 6 7 8 9 10₹0.00
₹500,000.00
₹1,000,000.00
₹1,500,000.00
₹2,000,000.00
₹2,500,000.00
₹3,000,000.00
₹598,532.70
Break Even Chart
Sales Fixed Cost Total Cost BEP=598532.7