ljonas
Jun 30, 2009, 06:48 AM
Given: Total Revenue of 1000
Other Revenue of 200
Total Operating costs of 600
Gross Operating Profit of 300
Net Profit of 100
How do I caltulate the BEPoint % Sales
Thank You
rehmanvohra
Jul 7, 2009, 05:04 AM
To calculate break even point, we need fixed costs. Your question does not give indication of such fixed costs. The formula is:
Break even point = Fixed costs/Sales - variable costs
The answer will be in percentage which will be applied to the total revenue to get the BEP
What is the other revenue? The net profit figure of $100 is without considering the other revenue.
Assume that the operating costs consist of $400 as fixed costs, BEP will be calculated as follows:
Fixed costs ----- 400------
Sales - variable costs 1000 - 200
BEP %= .50 or 50%
BEP value 1,000 x 50% or $500