Are You Breaking Even?


How much do you have to sell to break even now?

Fixed costs (overhead) divided by gross margin as a %.

Example – if it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month. So if you sold and delivered $125,000, and collected all the money, you make zero.

 

What’s your break-even now?

 

 

 

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About Larry Janesky

Larry Janesky Larry Janesky is the Author of Think Daily for business people - a collection of daily business tips. He is an award wining author and the founder of a number of successful businesses, most notably Basement Systems and Dr. Energy Saver.
 




3 Responses to “Are You Breaking Even?”

  1. [...] How much do you have to sell to break even now?Fixed costs (overhead) divided by gross margin as a %.Example – if it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month. So if you sold and delivered $125,000, and collected all the money, you make zero.  [...]

  2. [...] How much do you have to sell to break even now?Fixed costs (overhead) divided by gross margin as a %.Example – if it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month. So if you sold and delivered $125,000, and collected all the money, you make zero.  [...]

  3. [...] How much do you have to sell to break even now?Fixed costs (overhead) divided by gross margin as a %.Example – if it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month. So if you sold and delivered $125,000, and collected all the money, you make zero.  [...]



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