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Break Even Analysis

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Break Even Analysis
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This is an example of break even analysis. This document is useful in conducting break even analysis.

BREAK EVEN ANALYSIS



MONTHLY VARIABLE COSTS (expenses that depend on the number of

children you serve. Likely changes from month to month.)



Food $__________

Materials/Supplies (office, art, crafts, etc.) $__________

Labor (employees) $__________

Other $__________

Sub-total $__________(A)



MONTHLY FIXED COSTS (these costs are NOT dependent on the number

of children served)



Advertising $__________

Dues/Subscriptions $__________

Insurance $__________

Rent $__________

Telephone $__________

Wages (for staff that do not work directly

with children such as a custodian) $__________

Training $__________

Maintenance and repairs $__________

Other $__________

Sub-total $__________(B)



OTHER CASH NEEDS $__________(C)



PROFIT GOAL (your decision) $__________(D)



BREAK EVEN POINT (equals A+B+C+D) $__________





Divide the break even point amount by the number of children you will

care for each month. This number tells you the average monthly income

needed PER child. $_________


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