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Breakeven Analysis Calculator

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Use this tool to determine if it is profitable to sell a proposed product.

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  • pg 1
									                                                                                                                                        Break Even Analysis

Instructions
1. In the "Break Even Analysis" tab, enter values for the lightly shaded cells (sales price per unit, sales volume per unit, commission per unit, etc.)

2. View the net profit (loss) in cell C23 that is automatically calculated for you.

3. Check the "Results" tab to see the break even point in unit sales. You can then plug in some estimated sales volumes to analyze profitability at various levels.

4. In the "Results" tab, plug in some estimated sales volumes to analyze profitability at various levels.

5. View the "Profitability Chart" tab to see a graphical representation of your sales volume analysis.

6. Share the results of your analysis internally with the Product team and senior management.
                                                                          Break Even Analysis
Sales                                          Unit Contribution & Variable Costs Per Unit
Sales Price Per Unit                 $199
Sales Volume Per Unit                1000      Unit Contribution Margin
Total Sales                       $199,000

Variable Costs
Commission Per Unit                   $25
Direct Material Per Unit               $5                                  Variable Cost Per Unit
Shipping Per Unit                      $5
                                                                           Unit Contribution Margin
Supplies Per Unit                      $5
Other Variable Costs Per Unit          $3
Variable Cost Per Unit                $43
Total Variable Costs               $43,000
Unit Contribution Margin             $156
Gross Margin                      $156,000      Variable Cost Per Unit
Fixed Costs Per Period
Administrative Personnel           $25,000
                                                                            Commission Per Unit
Communications                     $10,000
Tax                                 $1,999                                  Direct Material Per Unit
Licenses                            $5,000                                  Shipping Per Unit
Other Fixed Costs                   $2,500
                                                                            Supplies Per Unit
Total Fixed Costs Per Period       $44,499
                                                                            Other Variable Costs Per Unit
Net Profit/Loss                 $111,501
Variable Cost Per Unit                $43.00
Unit Contribution Margin             $156.00
                                                                                                                                                  Break Even Analysis
Enter estimated sales per period (units) in top row of calculator to determine your profitability based on sales volume.


  Break Even Point (Units)                                285

  Sales Volume Analysis
  Sales volume per period (units)                           0         100         200         300         400         500         600       700       800       900       1000

  Sales price per unit                                       $199        $199        $199        $199       $199           $199     $199      $199      $199      $199      $199

  Variable costs                                                $0     $4,300      $8,600    $12,900     $17,200     $21,500      $25,800   $30,100   $34,400   $38,700   $43,000

  Fixed Costs Per Period                                  $44,499     $44,499    $44,499     $44,499     $44,499     $44,499      $44,499   $44,499   $44,499   $44,499   $44,499

  Total costs                                             $44,499     $48,799    $53,099     $57,399     $61,699     $65,999      $70,299   $74,599   $78,899   $83,199   $87,499

  Total sales                                                   $0    $19,900    $39,800     $59,700     $79,600     $99,500 $119,400 $139,300 $159,200 $179,100 $199,000

  Net profit (loss)                                      -$44,499    -$28,899    -$13,299      $2,301    $17,901     $33,501      $49,101   $64,701   $80,301   $95,901 $111,501
 $250,000



                                                                                                                                   $199,000
 $200,000
                                                                                                                        $179,100
                                                                                                             $159,200

 $150,000                                                                                       $139,300
                                                                                    $119,400
                                                                                                                                   $111,501
                                                                        $99,500                                         $95,901
 $100,000
                                                            $79,600                                           $80,301
                                               $59,700                                          $64,701
                                                                                    $49,101
  $50,000                         $39,800
                                                                        $33,501
                       $19,900                              $17,901
              $0                                $2,301
      $0                          -$13,299
               0         100
                       -$28,899     200          300         400          500         600         700           800       900       1000

            -$44,499
 -$50,000
                                                                        Unit Sales

-$100,000
                                   Fixed Costs Per Period       Total costs       Total sales      Net profit (loss)

								
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