BREAK EVEN POINT ANALYSIS
BREAK EVEN UNITS FOR THE YEAR
Break even point Analysis Total Units 1200
For the year Total Revenues 24000
Jan-09 Contribution margin 21600
Total Fixed Cost 10800
Selling price per unit 20 600
BREAK EVEN UNITS FOR THE YEAR
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
Number Of Units Sold 100 100 100 100 100 100 100 100 100 100 100 100
TOTAL REVENUES 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Variable Cost
Materials 200 200 200 200 200 200 200 200 200 200 200 200
Direct Labor
Indirect Labor
Utilities
Insurance
Taxes
Telephone
Accounting and legal
Advertising
Repairs and maintainer
Misc. expenses
TOTAL VARIABLE COST 200 200 200 200 200 200 200 200 200 200 200 200
CONTRIBUTION MARGIN 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800
Fixed Cost
Rent 900 900 900 900 900 900 900 900 900 900 900 900
Office and Administrative salaries
Other Fixed Cost
TOTAL FIXED COST 900 900 900 900 900 900 900 900 900 900 900 900
BREAK EVEN UNITS 50 50 50 50 50 50 50 50 50 50 50 50
cost which the business has to meet whether it produces or not, examples of
such costs include leaseholds and management salary. Variable costs are cost tied to production and
they are incurred as a result of goods or services production. Labor cost and material cost are examples
of variable costs.
Excel is an excellent tool for analysis break even point. By keying in input, a business is supplied with
decision tool to analysis different scenarios and determines the price and production units to be
produced and sold to break even. Because a business can not easily control fixed cost, managers and
business owners are always advised to manage variable cost in order to stay competitive in pricing. The
excel template allows altering different variable to show break even units under different scenarios.
BREAK EVEN POINT ANALYSIS
BREAK EVEN UNITS FOR THE YEAR
Break even point Analysis Total Units 1200
For the year Total Revenues 24000
Jan-09 Contribution margin 21600
Total Fixed Cost 10800
Selling price per unit 20 600
BREAK EVEN UNITS FOR THE YEAR
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Number Of Units Sold 100 100 100 100 100 100
TOTAL REVENUES 2000 2000 2000 2000 2000 2000
Variable Cost
Materials 200 200 200 200 200 200
Direct Labor
Indirect Labor
Utilities
Insurance
Taxes
Telephone
Accounting and legal
Advertising
Repairs and maintainer
Mis expense
TOTAL VARIABLE COST 200 200 200 200 200 200
CONTRIBUTION MARGIN 1800 1800 1800 1800 1800 1800
Fixed Cost
Rent 900 900 900 900 900 900
Office and Administrative salaries
Other Fixed Cost
TOTAL FIXED COST 900 900 900 900 900 900
BREAK EVEN UNITS 50 50 50 50 50 50
ANALYSIS
Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
100 100 100 100 100 100
2000 2000 2000 2000 2000 2000
200 200 200 200 200 200
200 200 200 200 200 200
1800 1800 1800 1800 1800 1800
900 900 900 900 900 900
900 900 900 900 900 900
50 50 50 50 50 50