Simple Break-Even Analysis Excel Model

Description
This is a Break-Even Analysis, simple but still very handy and useful application which will help you quickly and easily determine the breakpoint in your business.

Companies face two kinds of costs:

-Variable costs are expected to change with Sales; they are constant per unit
-Fixed costs are constant, regardless of quantity of production

The break-even point can be defined as:
the level of sales at which a business makes neither a profit nor loss.Generally, "profits" are seen to be EBIT, not Net Income.

The key elements of this application are:
1.Sales Data -which consist of Sales price per unit,Sales volume per period (units)
2.Variable Cost Data-which consist of Commission per unit, Direct material per unit, Shipping per unit, Supplies per unit and Other variable costs per unit.
3.Fixed Costs Data-which consist of Administrative costs, Insurance, Property tax, Rent or depreciation if fixed assets is owned, Other fixed costs.
Using this data we calculate
-Unit contribution margin ((Price per Unite-Var.costs per Unit) is called the Unit Contribution Margin
-Gross Margin
-Net Profit (Loss)
and as a final result we have
-Break-even Point (units)
-Break-even Point ($)

This application also contains a Sales Volume analysis Table to help you better understand the relationship between sales volume, breakpoints and the net profitability of your business.