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ANZ Small Business - Breakeven Analyser

13-01-01 12:34 PM

ANZ

Tools, Forms & Guides
Breakeven Analyser
The breakeven analysis calculator allows you to examine some of the critical profit drivers of your business including- sales volume, average cost of production and the average sales price. The calculation indicates the average number of units your business has to sell to cover set up costs (in a start up business), to cover fixed costs in an established business, or to achieve a desired profit level. For information on using this calculator see below. Number of product units to be sold to breakeven or result in nominated profit Total sales income Gross profit margin 1000 units $ 18,000.00 66.67 %

Input desired Net profit (whole dollars) or leave at zero for breakeven $ 0 Input startup or fixed costs (whole dollars) Input average variable cost of production of units Input average unit sales price
$ $ $

12000 6 18

A red star

indicates a mandatory field.

Fill in the required values based on the following information: Leave profit at zero for breakeven or input a desired profit amount in whole dollars. The start up or fixed costs of your business are the costs that are payable even if your business did not sell anything (for example rent, rates and finance costs). Input in whole dollars. The average variable cost is the cost of producing each "unit" sold by your business (such as variable labour, production or raw material costs). This could be $2 per kilogram of wool or $5 per haircut. Alternatively leave the default zero in the average variable cost box and put all the business' costs in the Input startup or fixed costs area. This will result in all costs being treated as fixed with a Gross Profit Margin of 100%. This is the case for many industries with zero or few variable costs. The average unit sales price is the average price per

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