Quick breakeven analysis Model
Originally published: 29/01/2021 13:09
Publication number: ELQ-11468-1
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Quick breakeven analysis Model

Breakeven analysis Model in Microsoft Excel to download.

Description
This easy to use and customisable breakeven analysis template enables you to identify the minimum level of sales needed to make a profit. This is a critical analysis to understand:

How long it will be before you turn a profit?
What is the best pricing levels?
Which costs do I need to cover?
Should we upgrade our machinery?

With this easy to use analysis tool, we build up your:

⚡Sales volumes - How many units you ship in a given time period (this can be a good or service)
⚡Unit pricing - How much you charge per unit
⚡Variable costs - Costs are those that occur in making a sale, and they rise in proportion to our sales e.g. direct labour and materials, commissions, packaging, royalties, or merchant fees.
⚡Fixed costs - Costs are those that occur regardless of whether you make a sale e.g. insurance, salaries & benefits or rent
⚡Your profit profile - The profit given the volumes, pricing and costs

With this analysis you will:

💪Understand at what point you will start making a profit
💪Determine your best pricing strategy
💪Understand your unit costs and overall cost structures
💪Build your minimum unit sales targets
💪Set your budgets and gain focus

You can also run up to 5 scenarios to understand how increases (and decreases) in your unit price and costs will impact the breakeven volumes. The analysis is also pre-populated to offer additional guidance.

The workbook is made up of:

1/ Introduction - clear instruction on how to use the model
2/ Breakeven analysis - where you input, test scenarios and calculate your breakeven point

This Best Practice includes
1 Breakeven analysis workbook

Almax Partners offers you this Best Practice for free!

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Further information

To enable business owners and managers to run a quick breakeven analysis and make better decisions

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