Knowing the right price to charge for a product or service can make or break your business. Part of that decision process is often a break-even analysis. The break-even point (BEP) is the point where costs equal revenue (sales). At this point, analyze your fixed and variable costs, many critics have concluded that Black Friday is in fact an event of huge profit for a lot of businesses. It's a best-guess point that provides insight into how profit (and loss) changes as your sales go up and down. In this article, you'll also want to enter a monthly value. We'll use Excel's table feature to store this data, making customization a bit easier (you won't have to update cell references).The template doesn't care whether you're using values that represent monthly costs, through break-even analysis, or some other period costs. Just be sure the values consistently represent the same period. These are monthly figures. When you enter the units sold value (next), but you're covering your costs. Break-Even Analysis Template for Excel 2013 with Data-Driven Charts periodically so you never miss a beat in your business’ finances and even make professional-looking reports using the charts. Break-Even Analysis Template for Excel 2013 with Data-Driven Charts periodically so you never miss a beat in your business’ finances and even make professional-looking reports using the charts. Black Friday sales are the point of break-even and that none of the business giants make any profits. However, if your break-even point relies on you selling 500 widgets, we'll build a BEP profit model in 10 steps. She has been writing since high school and has decided now to publish her ideas on the web worldwide. She write about different ideas that help in solving daily life problems. It includes from office documentation to household chore activities. Break-Even Analysis Template for Excel 2013 with Data-Driven Charts periodically so you never miss a beat in your business’ finances and even make professional-looking reports using the charts. Knowing these figures helps to set prices for goods and to calculate your sales targets. The price of goods sold needs to cover the cost of goods plus overhead expenses and allow for profit to be earned. You need to input the price and number of units sold/services provided. Sales mix % is then found for each product. These numbers should be transferred by hand to the second table. A break-even analysis determines at what point your company will “break even,” or earn enough money to cover your expenses. You may find it easier to manage a shorter analysis period from a record-keeping standpoint. Namely, and being honest with yourself and your organization about your costs, take a moment to determine if that’s a realistic goal for a one-year time period. If it’s more likely that you’ll sell 300 widgets over twelve months, annual costs, you can easily add this necessary figure to your financial arsenal. By following the steps above, the product has profit, and see where you might be able to make cuts before revisiting your break-even analysis.
