Break Even Analysis

The Break Even analysis presents the opportunities and risks of your business. The Break-Even point is the minimum sales quantity or sales amount that covers your operating expenses. Each point below the break-even point reflects the operating loss; each point above reflects the operating profit.

The Break-Even formulas are:

Revenue at Break-Even = Fixed Expenses + Variable Expenses

Quantity at Break-Even = Fixed Expenses / (Unit Price - Unit Variable Cost)

Φ Notes:

• In the formula above, adjust Variable Expenses for unit price and variable costs.
• In the formula above, adjust Variable Expenses for unit price and variable costs.
• Business Planner analyzes the quantity or dollar amount needed for Break-Even in percentage increments of forecast revenue beginning with 10%. If your plan is profitable at 10% of projected revenue, Business Planner generates the report, but does not show a break-even point.
• Business Planner analyzes the quantity or dollar amount needed for Break-Even in percentage increments of forecast revenue beginning with 10%. If your plan is profitable at 10% of projected revenue, Business Planner generates the report, but does not show a break-even point.

The Break Even columns are explained below.

Sales: The revenues in the analyzed period

Fixed Expenses: The fixed expenses include expenses entered in the Operating Expenses screen in the fixed expenses section and in the salary and staff section.

Variable Expenses: The variables expenses include direct costs of the sold products or services and expenses entered the Operating Expenses screen in the Variable Expenses section.

Operating Profit: The Sales (Revenues) less fixed and variable expenses.

Toolbar Buttons

The toolbar includes the following buttons:

OK - Close screen (and save all changes if applicable)

Print Table - Create a report for the current table, showing it on the print preview screen

Display Options - Arrange the screen in different arrangements: display table with graph or just one of them.

Export to MS Excel file - Exports the displayed table to MS Excel