Breakeven Analysis Workbook
The workbook contains four easy-to-use Excel worksheets carefully designed to calculate the breakeven point in units and sales revenue. They also calculate contribution and profit over the relevant range. You can see the relationship between cost, volume and profit at a glance. The worksheets are a vital management tool for evaluating your pricing and operations strategy. They will show you your margin of safety and whether your business idea is viable.
If you want to achieve a specific target return on your capital investment projects, or a desired gross profit margin on each unit of product, simply plug those values into the worksheet, and you will see exactly how many units of product you need to sell and what your breakeven sales revenue will be.
You can also use the worksheets to show you what revenue and profit you will achieve when you sell a specific number of products.
If you sell multiple products, you can also determine your breakeven quantity and sales revenue very easily by using the worksheet specially designed for that purpose.
With these worksheets you can:
- Determine your breakeven quantity and sales volume, for single or multiple products.
- Analyse the relationship between cost, and profit at different levels of sales.
- Set a target return on investment in assets.
- Evaluate the viability of a project.
- Set a desired gross margin percentage on sales.
- Determine your margin of safety.
- Apply the worksheets to any type of business: manufacturing, retail, or service.
- Apply the worksheets to any type of business problem where you need to determine breakeven in terms of quantity and sales revenue.