I

. Br
eakev
enPoi
nt

A.Br
eakev
enPoi
ntf
orSi
ngl
ePr
oduct
s

BEPunits(
sol
v orQ)=0=(
ef USPxQ)(
-UVCxQ)
-TFC

TFC
BEPunits=
USP-UVC

TFC
BEPunits=
UCM

BEPpesos(
sol
v orUSPxQ)=0=(
ef USPxQ)(
-UVCxQ)
-TFC

TFC
BEPpeso=
CMR

BEPunits=Act
ual
orBudget
edSal
esi
nUni
ts-MOSunits

BEPpesos=Act
ual
orBudget
edSal
esi
npesosx(
1-MOS%)

B. Br
eakev
enPoi
ntf
orMul
ti
-Pr
oduct
s

TFC
Composi
teBEP/
BEPcombinedunits=
Wei
ght
edAver
eageUCM

TFC
Composi
teBEP/
BEPcombinedunits=
Wei
ght
edAver
eageCMR

(
UCM ofAxNo.ofuni
t x)(
sperMi +UCM ofBxNo.ofuni
t x)
sperMi +…
Wei
ght
edAv
erageUCM =
Tot
alnumberofuni
tsperSal
esMi
x

Wei
ght
edAv
erageUCM = ∑ToUtCaMlnxumb
No.ofuni
tsperSal
erofuni
t
esMi
sperSal
x
esMix

TotalWeightedCM
Wei
ght
edAv
erageCMR=
TotalWeightedSal
es

Wei
ght
edUCM
Wei
ght
edAv
erageCMR=
Wei
ght
edUSP

Wei
ght
edAv
erageCMR= ∑TotalCSMRx
al
Sal
esf
esperpr
ort
hewhol
oduct
esal
esmi
x

C.Ot
herRel
evantFor
mul
as

UCM =USP-
UVC

CM =Tot
alSal
es-
Tot
alVar
iabl
eCost
s
 TotalVC
VCR=
TotalSal
es

UVC
VCR=
USP

CM
CMR=
Tot
alSal
es

UCM
CMR=
USP

Changei
nProfi
t
CMR=
Changei
nSales

CMR=1-
VCR

Legend:

BEPunits=Br
eakev
enpoi
nti
nter
msofnumberofuni
ts

BEPpesos=Br
eakev
enpoi
nti
nter
msofpesosal
es

USP=Uni
tSel
l
ingPr
ice

UVC=Uni
tVar
iabl
eCost

TFC=Tot
alFi
xedCost

MOSunits=Mar
ginofsaf
etyi
nter
msofnumberofuni
ts

Q=Quant
it
yorNumberofUni
ts

UCM =Uni
tCont
ri
but
ionMar
gin

CM =Cont
ri
but
ionMar
gin(
Tot
al)

CMR=Cont
ri
but
ionMar
ginRat
io

VCR=Var
iabl
eCostRat
io

MOSpesos=Mar
ginofsaf
etyi
nter
msofpesos

I
I. REQUI
REDSALESCONSI
DERI
NGDESI
REDPROFI
T

Thebr
eak-
evenfor
mulamaybeexpandedtocomput
efort
her
equi
redsal
es(
inuni
tsor
i
npesos)t
oearnadesi
redamountofprof
it
.

Rel
evantFor
mul
as

1. Si
ngl
ePr
oduct
 a. Desi
redPr
ofi
tbef
oreTax

TFC+Desi
redPr
ofi
t
Requi
redSal
esi
nUni
ts=
UCM

TFC+Desi
redPr
ofi
t
Requi
redSal
esi
nPesos=
CMR

b. Desi
redPr
ofi
taf
terTax

Desir
edProf
it
TFC+[ ]
1-
Tax%
Requi
redSal
esi
nUni
ts=
UCM

Desir
edProf
it
TFC+[ ]
1-
Tax%
Requi
redSal
esi
nPesos=
CMR

c. Desi
redPr
ofi
tRat
io

TFC
Requi
redSal
esi
nUni
ts=
UCM-
Profi
tperuni
t

Pr
ofi
tperuni
t=USPxPr
oftRat
io

TFC
Requi
redSal
esi
nPesos=
CMR-
Prof
itRat
io

2. Mul
ti
plePr
oduct
s

a. Desi
redPr
ofi
tbef
oreTax

TFC+Desi
redProf
it
Requi
redSal
esi
nUni
ts=
Wei
ghtedAv
erageUCM

TFC+Desir
edPr
ofi
t
Requi
redSal
esi
nPesos=
Wei
ghtedCMR

b. Desi
redPr
ofi
taf
terTax

Desi
redProf
it
TFC+[ ]
1-Tax%
Requi
redSal
esi
nUni
ts=
Weight
edAverageUCM

Desir
edProf
it
TFC+[ ]
1-
Tax%
Requi
redSal
esi
nPesos=
Weight
edCMR

I
II
.MARGI
NOFSAFETY
 MOSunits=Act
ual
orBudget
edSal
esi
nUni
ts-BEPunits

MOSunits=Act
ual
orBudget
edSal
esi
nUni
tsxMOS%

MOSpesos=Act
ual
orBudget
edSal
esi
nPesos-BEPpesos

MOSpesos=Act
ual
orBudget
edSal
esi
nPesosxMOS%

MOSunits
MOS% =
Act
ual
orBudget
edSal esi
nUni
ts

MOSpesos
MOS% =
Act
ualorBudget
edSal esi
nPesos

Pr
ofi
tRat
io
MOS% =
CMR

Prof
it
MOS% =
CM

1
MOS% =
DOL

BEPpesos
MOS% =1-
Act
ual
orBudget edSaes

I
II
.DEGREEOFOPERATI
NGLEVERAGE

CM
DOL=
EBI
TorI
ncomeorPr
ofi
tbef
oreTax

%△i
nEBIT
DOL=
%△i
nSal
es

Fi
xedCost
s
DOL=1+
I
ncomeorEBIT

1
DOL=
MOS%

I
V.I
NDI
FFERENCEPOI
NT

I
ndi
ff
erencePoi
nti
nUni
ts(
sol
v orX)=CM1(
ef X)FC1=CM2(
- X)-
FC2

(FCof1-FCof2)
I
ndi
ff
erencePoi
nti
nUni
ts=
(UCM ofAl
ternat
ive1-
UCM ofAl
ter
nat
ive2)