If the ZFP is higher than 0.5, this means that the minimum revenue exceeds the TBU by 2 times, and the company has no financial problems. Let’s say that you understand that for your business 60% is an excellent profitability indicator that you should strive for, and the break-even point level is 60,000 rubles, then: The revenue you need to achieve = 60,000/(1-0.6) = 150,000 rubles. In conclusion, it is worth noting that all calculations and break-even point analysis are not necessary and useful in every case.
You need to follow the rules
A practical example of calculating the break-even point In the end, we will consider a real example of how to use and calculate the breakeven point and its elements in practice. We will determine how it can help a business. Let’s take a slightly non-standard example, where the main task is to optimize the current product range and choose which of the positions is more economically profitable and should be sold in larger volumes.
Businessman Vladislav decided to open his own clothing brand
Initially, he sold only leather bags through the website. Things were going well, and after a couple of months, Vladislav began to think about scaling the pakistan phone number library business. The idea of selling belts came up. The average cost of belts on the market among competitors is 10,000 rubles. Variable costs according to calculations are 3,000 rubles (fixed costs are not taken into account in this example). This means that the marginal profit per unit of production is 7,000 rubles. At the same time, the bags were sold for 17,000 rubles with expenses of 7,500 rubles.
Their marginal profit was 9,500 rubles
It takes 5 hours to produce and process one belt, 12 hours what is your life motto for a bag. The hypothetical market demand for belts is 20 pieces per month, and for bags – 10. An entrepreneur has 20 working days per month, 8 hours each. The total time resource should be 160 hours. It is necessary to understand what is more profitable to produce and in what volumes.
How to optimize production
Without calculations, it seems that it is more profitable to tg data produce. And sell only bags, since they have a higher margin. Although the cost of expenses is higher. And if we do this, then, based on the calculation of productivity of 160 hours, we get: we will spend 120 hours on 10 bags; the remaining time