Using Templates | Description | Variables | Examples
Description
This template is for breakeven calculations. For any company, making a profit is the key to success. By analyzing the relationship between revenues and expenses, the levels at which a company has to operate in order to breakeven can be determined. Breakeven is the point at which expenses equal revenues. Until that point, a company is operating at a loss.
Variables
- Fixed Cost: the fixed costs. These are costs that are not dependent on each unit sold. An example is rent – whether 0 or 5000 units are sold, the rent will always be the same.
- Var Cost: the variable cost per unit. These are costs that are dependent on each unit sold. For instance, shipping costs do not occur unless a unit is sold.
- Price: the price per unit. This is the price at which the product is sold.
- Tax Rate%: applicable tax rate as a percentage.
- Profit: the amount of profit determined or expected. Positive values are profits while negative ones are losses.
- Quantity: the number of units sold.
Examples
Breakeven Analysis
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