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Breakeven Point
Formula to calculate breakeven point:
Breakeven Point = fixed costs / contribution margin.
Breakeven point definition and explanation:
The breakeven point is the point at which a business breaks even (incurs neither a profit nor a loss)
The breakeven point is the minimum amount of sales required to make a profit.
Increasing breakeven points (period to period) indicates an increase in the risk of losses.
The breakeven point is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.
The breakeven point is listed in our efficiency ratios.
Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):
See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets calculate, define and explain.
Click here to order excel accounting spreadsheet to calculate 15 ratios with formulas, definitions, calculations, charts, and explanations for each ratio. (Includes Breakeven Point and Cash Breakeven Point).
Order free 3 ratio calculator spreadsheet. Current, quick and debt-to-equity ratios with formulas, calculations, charts and explanations. Email us at
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