Breakeven Volume & Profit / Loss

Breakeven Volume Chart

(How to Use The Chart Below)

Enter the chart on the left side at your average Overhead (O.H.) $ per Month. Go across to the column that shows your average Gross Margin (G.M.) %. Read your monthly Breakeven (B.E.) $ and below that your daily B.E. $.

Example: O.H. - $140,000; G.M. 45%

*It is ok to interpolate between the numbers*

The O.H. on this chart only goes to $240,000 per month. If your O.H. is more than $240,000, go into the chart at 1/2 of your O.H., go across to your average G.M.%, drop down to B.E. $ and double it.

Example: O.H. $320,000; G.M. 40%

Breakeven Volume (B.E.) is the $ sales you need per month to pay your Overhead (O.H.) On all sales over your B.E., your G.M. $ becomes your net profit $.

Example: Company with B.E. at $200k and G.M. at 50%. If this company does $300,000 in one month, they exceed their B.E. by $100,000, 50% of this is Net Profit. $50,000 which is 16.7% of $300,000.

For every $10,000 that you exceed your B.E., this is the profit you make on that $10,000 based on G.M.

For every $10,000 you fall short of B.E., this shows how much you lose on that $10,000

If you have any questions, please do not hesitate to call me.

Thanks for all you do and as always “Expect More From Us”!

Thanks,

Bruce Martin

Dealer Business Consultant

Value Added Distributors

(757) 469-1205