Revenue-cost = profit
Revenue-(fixed cost+variable cost) = profit
The breakeven point is calculated when the profit is zero.
So it is: revenue-(fixed cost+variable cost) =0.
Namely: revenue-fixed cost = variable cost.
What is the break-even point? What is the calculation formula?
Break-even point (BEP) is also called zero profit point, break-even point, break-even point and income turning point. Usually refers to the output when the total sales revenue equals the total cost (the intersection of the sales revenue line and the total cost line). Taking the break-even point as the boundary, when the sales revenue is higher than the break-even point, the enterprise will make a profit, otherwise it will lose money. The break-even point can be expressed by sales volume, that is, the sales volume of the break-even point. It can also be expressed in terms of sales, that is, sales at breakeven point.
BEP=Cf/(p-cu-tu)
Among them: production and sales of breakeven point.
Cf- fixed cost
Unit product sales price
Variable cost per unit product
Tu- business tax and surcharges for unit products
Because unit product tax and surcharge are often the product rate of unit product sales price, business tax and surcharge, its formula can be expressed as:
BEP=Cf/(p( 1-r)-cu)
R- business tax and additional tax rate
Calculated by physical units: breakeven point = fixed cost/(unit product sales revenue-unit product variable cost)
Calculated by amount: breakeven point = fixed cost /( 1- variable cost/sales revenue) = fixed cost/contribution gross profit.
How does the decoration company calculate the break-even point? For the accounting of breakeven point, in fact, no matter what kind of industry, its calculation method and rules are basically the same, that is, we understand the conservation of energy, so