Breakeven Analysis

Slice of Heaven Pizzeria

Cost Description Variable Costs Cost of Goods Sold Inventory Ra !aterials "irect #a$or %Incl&des Payroll 'a(es) Fixed Costs Salaries %incl&des *ayroll ta(es) S&**lies Re*airs + ,aintenance -dvertisin. Car, delivery and travel -cco&ntin. and le.al Rent 'ele*0one 1tilities Ins&rance 'a(es %Real estate, etc.) Interest "e*reciation 2t0er %s*ecify) 2t0er %s*ecify) !iscellaneo&s e(*enses Princi*al *ortion of de$t *ay,ent 2 ner4s dra Total Fixed Costs Total Variable Costs Fixed Costs ($) $20,000 $50,000 $15,000 $15,000 Variable Costs (%) 5.0% 10.0% 0.0% 0.0%

$50,000 $10,000 $10,000 $20,000 $15,000 $10,000 $/5,000 $5,000 $5,000 $25,000 $5,000 $5,000 $10,000 $3 $3 $10,000 $10,000 $3 $/25,000 15%

Breakeven Sales level =

S !!estions

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You may want to print this information to use as reference later. To delete these instructions, click the border of this text box and then press the DELETE key. '0e cate.ories of e(*ense s0o n a$ove are 6&st s&..estions. C0an.e t0e la$els to reflect yo&r o n acco&ntin. syste,s and ty*e of $&siness. 7rea8even is a 9$i. *ict&re9 8ind of tool: e reco,,end t0at yo& co,$ine e(*ense cate.ories to stay it0in t0e 22 lines t0at t0is te,*late allo s. 2ne of t0e $est &ses of $rea8even analysis is to *lay it0 vario&s scenarios. ;or instance, if yo& add anot0er *erson to t0e *ayroll, 0o ,any e(tra sales dollars ill $e needed to recover t0e e(tra salary e(*ense< If yo& $orro , 0o ,&c0 ill $e needed to cover t0e increased *rinci*al and interest *ay,ents< !any o ners, es*ecially retailers, li8e to calc&late a daily $rea8do n. '0is .ives everyone a tar.et to s0oot at for t0e day.