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    ljonas's Avatar
    ljonas Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 30, 2009, 06:48 AM
    Break Even Point % Sales
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    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
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