Break Even Point
This query is : Resolved
11 December 2010
How we can calculate the Break Even sales of a retail concern?
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.
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.
13 December 2010
Formulae is:
Fixed Cost / PV ratio
PV ratio is:
Sales / variable cost
Fixed Cost / PV ratio
PV ratio is:
Sales / variable cost
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