# Break even turnover how to calculate?

An entrepreneur sees an advert for a supermarket that is offered for sale. He calculates the operating cost, which is estimated at R100 000.Gross profit percentage for supermarkets in the area is 20%.What will be the break-even turnover

 abc123333 Posts: 1, Reputation: 1 New Member #2 Jul 23, 2012, 01:20 PM
Break even gross profit = operating costs
Gross profit = 20%
To break even 20% = R 100 000
Thus 100% = 100 000/20 * 100
(100 000*5)
Thus Break even number = R500 000

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