Breakeven Point in Peso = Fixed Cost (Operating PENTASTIC

Expense / Contribution Margin (Gross Profit) PROJECTED INCOME STATEME

For the Year Ended Dec. 31, 2022 – Dec.
2022
Sales 1,590,617.40
LESS: Cost of Goods Sold 454,949.24
GROSS INCOME 1,135,668.16
LESS: Operating Expenses
Advertising Expense 26,676.00
Repair and Maintenance 24,000.00
Salaries and Wages 858,000.00
Utilities Expense 60,000.00
Office Supplies 1,559.00
Depreciation Expense 6,188.00
Total Operational Expense 976,423.00

INCOME BEFORE TAX 159,245.16

Income Tax 25% 39,811.29
NET INCOME 119,433.87

Breakeven Point in Peso 1,367,578.55

To Check:

Sales 1,367,578.55
COGS 391,155.55
Gross Profit 976,423.00
Operating Cost 976,423.00
Operating Income 0.00

Break-even analysis allows you

costs. This point is known as yo
a need to at least have a sales
Php1,370,706.08 in 2024, Php1
cover our necessary expenses f
Analysis: incurring loss.
 PENTASTIC
ROJECTED INCOME STATEMENT
e Year Ended Dec. 31, 2022 – Dec. 31, 2026
2023 2024 2025 2026
1,650,834.46 1,709,312.08 1,767,967.27 1,826,999.98 100.00%
502,392.01 551,582.58 600,152.68 656,531.01 28.60%
1,148,442.45 1,157,729.50 1,167,814.59 1,170,468.97 71.40%

26,942.76 27,212.19 27,484.31 27,759.15

24,000.00 24,000.00 24,000.00 24,000.00
858,000.00 858,000.00 858,000.00 858,000.00
60,840.00 61,696.80 62,570.74 63,462.15
1,559.00 1,559.00 1,559.00 1,559.00
6,188.00 6,188.00 6,188.00 6,188.00
977,529.76 978,655.99 979,802.05 980,968.30 61.39%

170,912.69 179,073.51 188,012.54 189,500.67

42,728.17 44,768.38 47,003.14 47,375.17 2.50%
128,184.52 134,305.13 141,009.41 142,125.50 7.51%

1,369,128.68 1,370,706.08 1,372,311.25 1,373,944.70

1,369,128.68 1,370,706.08 1,372,311.25 1,373,944.70

391,598.92 392,050.09 392,509.20 392,976.40
977,529.76 978,655.99 979,802.05 980,968.30
977,529.76 978,655.99 979,802.05 980,968.30
0.00 0.00 0.00 0.00

eak-even analysis allows you to understand at what point your sales will cover your
sts. This point is known as your break-even point (BEP). For Pentastic Company, we
need to at least have a sales of Php 1,367,578.55 in 2022, Php1,369,128.68 in 2023,
p1,370,706.08 in 2024, Php1,372,311.25 in 2025 and Php 1,373,944.70 in 2026 to
ver our necessary expenses from variable(COGS) to operating expenses without
curring loss.
 Fixed Cost 2023 2024 2025
Advertising Expense 26,676.00 26,942.76 27,212.19
Repair and Maintenance 24,000.00 24,000.00 24,000.00
Salaries and Wages 858,000.00 858,000.00 858,000.00
Utilities Expense 60,000.00 60,840.00 61,696.80
Depreciation Expense 6,118.00 6,118.00 6,118.00
974,794.00 975,900.76 977,026.99
Cost Volume Profit Computation
Estimated Revenue or Sales in Php 1,590,617.40 1,650,834.46 1,709,312.08
Variable Cost 456,508.24 503,951.01 553,141.58
Contribution Margin 1,134,109.16 1,146,883.45 1,156,170.50
Fixed Cost in Peso 974,794.00 975,900.76 977,026.99
Operating Income 159,315.16 170,982.69 179,143.51
Breakeven = Fixed Cost / Contribution Margin
Total Fixed Cost 974,794.00 975,900.76 977,026.99
Contribution Margin 1,134,109.16 1,146,883.45 1,156,170.50
Breakeven in Percent 85.95% 85.09% 84.51%
Breakeven in Sales 1,134,109.16 1,146,883.45 1,156,170.50
Variable Cost 159,315.16 170,982.69 179,143.51
Contribution Margin 974,794.00 975,900.76 977,026.99
Fixed Cost 974,794.00 975,900.76 977,026.99
Net Profit/Loss 0.00 0.00 0.00
 2026 2027
27,484.31 27,759.15
24,000.00 24,000.00
858,000.00 858,000.00
62,570.74 63,462.15
6,118.00 6,118.00
978,173.05 979,339.30
tion
1,767,967.27 1,826,999.98
601,711.68 658,090.01
1,166,255.59 1,168,909.97
978,173.05 979,339.30
188,082.54 189,570.67
on Margin
978,173.05 979,339.30
1,166,255.59 1,168,909.97
83.87% 83.78%
1,166,255.59 1,168,909.97
188,082.54 189,570.67
978,173.05 979,339.30
978,173.05 979,339.30
0.00 0.00
 PENTASTI
Payback Period = Initial Investment / Cash Savings PROJECTED CASH FLO
For the Year Ended Dec. 31,

Cash Flow from Operating

Partner's Contribution
Net Income
Add: Depreciation Expense
Less: Increase in Inventory
Net Cash Flow from Operating Activities

Cash Flow from Operating Investing Activities

Purchase of Furniture & Fixture
Purchase of Machinery & Equipment
Net Cash Flow from Investing Activities

Cash Flow from Financing Activities

Loan Payable
Net Cash Flow from Financing Activities
Net Increase/(Decrease) in Cash
Cash at the Beginning of the Year
Cash at the End of the Year

Initial
Cash Investment
Savings (End of Year
Cash Balance)
Payback Period
In Months

Analysis:
 PENTASTIC
PROJECTED CASH FLOW STATEMENT
or the Year Ended Dec. 31, 2022 – Dec. 31, 2026
2022 2023 2024 2025 2026

400,000.00
119,433.87 128,184.52 134,305.13 141,009.41 142,125.50
6,188.00 6,188.00 6,188.00 6,188.00 6,188.00
-80,285.16 -61,415.15 -42,160.55 4,594.48 -39,577.29
445,336.71 72,957.37 98,332.58 151,791.89 108,736.21

-53,052.00
-86,891.00
-139,943.00

100,000.00
100,000.00
405,393.71 72,957.37 98,332.58 151,791.89 108,736.21
405,393.71 478,351.08 576,683.66 728,475.55
405,393.71 478,351.08 576,683.66 728,475.55 837,211.76

2022 2023 2024 2025 2026

400,000.00
405,393.71
0.99
11.84

The term payback period refers to the amount of time it takes

to recover the cost of an investment. For Pentastic Company,
given the project sales and expenses, it would only take us
less than a year or 11 months and 25 days to recover our
contribution.