Break-even point (sales volume) = fixed cost ÷ contribution difference per unit measurement
BEP=Cf/(p-cu-tu)
Average transition point
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.
Extended data
1, break-even point (BEP for short) is also called zero profit point, break-even point, break-even point and profit 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). With the breakeven point, when the sales revenue is higher than the breakeven point, the enterprise will make a profit, otherwise, the enterprise will lose money.
2. The breakeven point can be expressed by sales volume, that is, the sales volume of breakeven point; It can also be expressed in terms of sales, that is, sales at breakeven point.
3. Assuming that the profit is zero and the profit is the profit target, first calculate the purchase price of raw materials and the purchase price of Poly respectively; Then calculate the product break-even sales price and Poly sales price respectively. Calculation of breakeven point.
Breakeven point analysis
1, breakeven point analysis uses the fixity and variability of costs to determine the production range necessary for profit. If we can divide the total cost into two categories: one is variable with the output and the other is constant, we can calculate the average total cost per unit for a given output. Variable cost can be divided into fixed cost and variable cost.
2. However, when the fixed cost averages different output, the fixed cost per unit cost is different, so the concept of average cost per unit product is correct only for a calculated output value.
3. Therefore, conceptually speaking, it is beneficial to regard fixed cost as total cost. After deducting variable costs, the total cost must be compensated by net income, so that the operation can generate profits. If the net income after deducting the variable cost is just equal to the total cost, then this or that sales level is called breakeven point.
Accurately speaking, it is precisely because at this point in the sales process, the total net income just compensates the total cost (including fixed cost and variable cost). Below this point, there will be losses, while beyond this point, there will be profits. A simple breakeven point structure diagram. The horizontal axis represents output, and the vertical axis represents sales or cost.
Assuming that the sales volume is directly proportional to the sales volume, then the sales line is a straight line starting from the origin. The total cost line intersects with the vertical axis at a point equal to the fixed cost, and it increases proportionally with the increase of sales volume. Above the breakeven point, the ratio of profit to sales will increase for every product sold. This is because donations are fixed and the basis for sharing fixed costs has been expanded.
References:
Baidu encyclopedia-breakeven point