This new Break Even Analysis spreadsheet is helpful for analyzing the financial viability of a new venture or product. It calculates the break-even sales (number of sales required to break even), the break-even price, or the payback period. Each scenario is a separate worksheet within the workbook. The download page also includes detailed information about the formulas used to calculate the break-even point.
An Example: If the total fixed costs for the development and advertising of an iPhone application are $5,000 and the variable costs are 30%/unit and the sale price is $1.99, to break-even after 1 year would require about 300 sales per month (or about 10 per day).
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