Break-Even Analysis

[Proposed Product]

[Company Name]
[Date]

For the Period: Jan 1, 2009 - Jun 30, 2010 Selling Price (P): $ 12.00 Break-Even Units (X): 100 units Break-Even Sales (S): $ 1,188.12
[42]

Fixed Costs
Advertising Accounting, Legal Depreciation Interest Expense Insurance Manufacturing Payroll Rent Supplies Taxes (real estate, etc.) Utilities Other (specify) $ 1,000.00

Total Fixed Costs (TFC) Variable Costs

Variables Costs based on Dollar Amount per Unit Cost of Goods Sold Direct Labor Overhead Other (specify) Variables Costs based on Percentage Commissions Other (specify) Sum: $

1,000.00

Sum: $

1.00 per unit per unit per unit per unit 1.00 7.50% per unit per unit 7.50%

Total Variable Cost per Unit (V)

Contribution Margin per unit (CM) = P - V Contribution Margin Ratio (CMR) = 1 - V / P = CM / P

$
$

1.90
10.10 84.2%

Break-Even Point Break-Even Units (X) Break-Even Sales (S) Targeted Net Income

X = TFC / (P - V) S = X * P = TFC / CMR

100 units 1,188.12

Targeted Net Income Before Taxes (NIBT) Units required to reach targeted NIBT, X = (TFC + NIBT) / (P-V) Sales required to reach targeted NIBT, S = (TFC + NIBT) / CMR Rate of return on sales before taxes = NIBT / S Tax Rate (T) Net Income After Taxes (NIAT) = (1-T)*NIBT Rate of return on sales after taxes = NIAT / S

100 units 1,188.12 0.0% 25% 0.0%

Break-Even Analysis
[Proposed Product]

[Company Name]
[Date]

Chart
Units (X) $3,000 Fixed Cost
1,000.00 Total Cost 1,000.00 1,000.00 Total Revenue 1,000.00 Profit (Loss) 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 50 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 0 10 $2,500 20 30 $2,000 40 50 $1,500 60 70 $1,000 80 90 $500 100 110 120 $130 0 140 $(500) 150 160 $(1,000) 170 180 $(1,500) 190 200

Break-Even Point Total Cost Total Revenue

1,000.00 1,019.00 1,038.00 1,057.00 1,076.00 1,095.00 BEP 1,114.00 1,133.00 1,152.00 1,171.00 1,190.00 1,209.00 1,228.00 1,247.00 100 1,266.00 1,285.00 1,304.00 1,323.00 1,342.00 1,361.00 Units (X) 1,380.00

Profit (Loss)

150

(1,000.00) 120.00 (899.00) 240.00 Total Revenue (798.00) 360.00 (697.00) 480.00 (596.00) 600.00 (495.00) 720.00 Total Cost (394.00) 840.00 (293.00) 960.00 Profit (Loss) (192.00) 1,080.00 (91.00) 1,200.00 10.00 1,320.00 111.00 1,440.00 212.00 1,560.00 313.00 200 250 1,680.00 414.00 1,800.00 515.00 1,920.00 616.00 2,040.00 717.00 2,160.00 818.00 2,280.00 919.00 2,400.00 1,020.00

Break-Even Price
[Proposed Product]

[Company Name]
[Date]

For the Period: Jan 1, 2009 - Jun 30, 2010 Number of Units (X): 100 Break-Even Price (P): $ 11.89 per unit Break-Even Sales (S): $ 1,189.19
[42]

Fixed Costs
Advertising Accounting, Legal Depreciation Interest Expense Insurance Manufacturing Payroll Rent Supplies Taxes (real estate, etc.) Utilities Other (specify) $ 1,000.00

Total Fixed Costs (TFC) Variable Costs

Variables Costs based on Dollar Amount per Unit Cost of Goods Sold $ Direct Labor Overhead Other (specify) Sum (Vd): $ Variables Costs based on Percentage Commissions Other (specify) Sum (Vp):

1,000.00

1.00 per unit per unit per unit per unit 1.00

7.50% per unit per unit 7.50%

Total Variable Cost per Unit (V)

V = Vd + (Vp*P) Contribution Margin per unit (CM) = P - V Contribution Margin Ratio (CMR) = 1 - V / P = CM / P

$
$

1.89
10.00 84.1%

Break-Even Point Break-Even Price (P) Break-Even Sales (S) Targeted Net Income

P = (1/(1-Vp))*(Vd+(TFC/X)) S = X * P = TFC / CMR

$ $

11.89 1,189.19

Targeted Net Income Before Taxes (NIBT) Sales Price (P) required to reach targeted NIBT Sales required to reach targeted NIBT, S = X * P Rate of return on sales before taxes = NIBT / S Tax Rate (T) Net Income After Taxes (NIAT) = (1-T)*NIBT Rate of return on sales after taxes = NIAT / S

$ $ $

11.89 1,189.19 0.0% 25% 0.0%

Break-Even Price
[Proposed Product]

[Company Name]
[Date]

Chart
0 $ $2,500 1.78 $ 2.97 $ $2,000 4.16 $ 5.35 $ 6.54 $1,500 $ 7.73 $ 8.92 $1,000 $ 10.11 $ 11.30 $500 $ 12.49 $ 13.68 $$ 14.86 $ 16.05 $$ $(500) 17.24 $ 18.43 $$(1,000) 19.62 $ 20.81 $$(1,500) 22.00 $ 23.19 $ 24.38

Price (P) $3,000

Fixed Cost

Break-Even Price Total Cost Total Revenue

1,189.19 1,189.19 178.38 1,189.19 297.30 1,189.19 416.22 Total Revenue 1,189.19 535.14 1,189.19 654.05 1,189.19 772.97 1,189.19 891.89 1,189.19 1,010.81 1,189.19 1,129.73 Profit (Loss) 1,189.19 1,248.65 1,189.19 1,367.57 1,189.19 1,486.49 $15.00 $20.00 1,189.19 1,605.41$25.00 1,189.19 1,724.32 1,189.19 1,843.24 1,189.19 1,962.16 1,189.19 2,081.08 1,189.19 2,200.00 Sales Price 1,189.19 2,318.92 1,189.19 2,437.84

Profit (Loss)
(1,189.19) (1,010.81) (891.89) (772.97) (654.05) (535.14) (416.22) (297.30) (178.38) (59.46) 59.46 178.38 297.30 $30.00 416.22 535.14 654.05 772.97 891.89 1,010.81 1,129.73 1,248.65

1,000.00 Total Cost 1,000.00 1,000.00 Total Revenue 1,000.00 Profit (Loss) 1,000.00 1,000.00 BEP 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 $5.00 1,000.00 $10.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

Payback Period
[Proposed Product]

[Company Name]
[Date]

Selling Price (P): $ Number of Units Sold (x): Payback Period (t): Break-Even Sales: $ Fixed Costs
Start-up / Development Costs Development Labor Other start-up costs

5.00 100 per month 0.00 months [42]

$ $ $ Total Startup Costs (SC): $

Recurring Costs specified as $ per Month Advertising Web Host Fees Other recurring costs Recurring Costs (RC):

$ $ $ $

per month -

Total Recurring Costs: $

Total Fixed Costs (TFC) = SC + RC * t Variable Costs

Variables Costs based on Dollar Amount per Unit Cost of Goods Sold $ Direct Labor $ Overhead $ Other (specify) $ Sum: $ Variables Costs based on Percentage Commissions Other (specify) Sum: -

per unit per unit per unit per unit

0.00% per unit 0.00% per unit 0.00%

Total Variable Cost per Unit (V)

Contribution Margin per unit (CM) = P - V Contribution Margin Ratio (CMR) = 1 - V / P = CM / P

$
$

5.00 100.0%

Total Variable Cost (TVC) = V * x * t

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