Break-Even Point

One thing we haven't touched on too much throughout the training is the Break-Even Point. There isn't too much use to re-inventing the wheel where so many outstanding resources exist online, but I'll list of few notes then some links below.
- point that you break even
- using fixed AND variable costs
- BEP moves
- watch your fixed costs
- watch slope of revenue vs variable

BEP = total fixed costs [divided by] contribution

or

BEP = total fixed costs [divided by] (selling price - variable costs)
(sorry readers, can't quite figure out how to get blogger to underline or insert mathematical symbols like divided by)

http://www.accountingcoach.com/online-accounting-course/01Xpg01.html

http://www.12manage.com/methods_break-even_point.html

If you are struggling with your calculations, contact your local Community Futures office and ask for an appointment with the business analyst. These people have exceptional skills at assisting entrepreneurs explore their business idea and develop sound plans.