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Break Even Point

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(Querist)
11 December 2010 How we can calculate the Break Even sales of a retail concern?
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
12 December 2010 For Calculating Break even Sales of a Retail Concern you have to decide the following criteria-

What is the Fixed Cost per Period.
By what amount of sales the retailer can get as much profit as to meet the Fixed Cost.
This will be Retailer's Break Even Sales.

For Fixed cost you may consider Rent, Electric Bill, Salary (Fixed), etc.
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sachin

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sachin (Expert)
13 December 2010 Formulae is:

Fixed Cost / PV ratio

PV ratio is:

Sales / variable cost
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