BlackBerry | Breakeven

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.