Company Name:

BREAKEVEN POINT CALCULATION

STEP 1: Determine total overhead costs.
Rent
1500.00
Electricity
350.00
Telephone
250.00
Water /Sewer
175.00
Advertising
350.00
Salaries
6500.00
Owner's Draw
2000.00
Postage/Shipping
75.00
Office Supplies
100.00
Loan Payment
450.00
Insurance
170.00
Miscellaneous
0.00
Other
100.00
Total Overhead
$12,020.00
STEP 2: Determine average profit margin for products/services.
% of
Sales
Products/Services
Sales
Price
COGS
Contribution
Wheel Purchase
40%
1800.00
700.00
1100.00
Tire Purchases
40%
1000.00
450.00
550.00
Installation
20%
250.00
55.00
195.00
0%
0.00
0.00
0.00
0%
0.00
0.00
0.00
(Must equal 100%)

100%

Average profit margin:

Average sales per customer:

STEP 3: Determine monthly break-even in dollars.

Total Overhead
divided by Average Profit Margin
= BREAKEVEN

$12,020.00
62.04%
$19,373.21

STEP 4: Determine break-even point by week, day, hour, and unit.

Avg Sales per Customer
Days Open Per Week
Hours Open Per Day
BREAKEVEN
Monthly In Dollars
In Units
Weekly In Dollars
In Units
Daily In Dollars
In Units
Hourly In Dollars
In Units

$1,170.00
5
8

$19,373.21
$4,471.08
$894.22
$111.78

Prod 1
$7,749.28
4.31
$1,788.43
0.99
$357.69
0.20
$44.71
0.02

Prod 2
$7,749.28
7.75
$1,788.43
1.79
$357.69
0.36
$44.71
0.04

Prod 3
$3,874.64
15.50
$894.22
3.58
$178.84
0.72
$22.36
0.09

Profit
Weighted
Margin Profit Marg.
61.11%
24.44%
55.00%
22.00%
78.00%
15.60%
0.00%
0.00%
0.00%
0.00%
62.04%
$1,170.00