Learn to get the cómputo point with
In today’s article I am going to teach you how many units (products) you need to sell to break even and at the same time, obtaining the profits that you want to obtain.
What is the break-even point of a company?
Simply put, the break-even point is the point at which a company’s revenue equals its expenses.
In such a way that at that point the company neither wins nor loses.
Of course, the break-even point is a primordial tool for a company, however, it is also it is possible to use the equilibrium point from another approach, that is, contemplating the profits that you want to obtain.
This is the approach to the break-even point that I am going to talk about today.
I hope you find it useful.
What is the breakeven point with utility?
If you own a business, chances are you want to make a profit, right? Well, the breakeven point perro tell you how much you need to sell (in units or in volume) in order to neither win nor lose.
Of course, it is good to know, however, thinking about the fact that you want to make a profit from your business, then I am going to espectáculo you a little more advanced form of the break-even point that will help you to know how many units (products) you need. sell to cover your expenses (costs) and get the profit you want.
In such a way that it will help you to know the products that you have to sell to obtain what you want to earn.
breakeven point without utility
The following elabora will help you to obtain the habitual break-even point, that is, it will allow you to know how many units (products) you need to sell so that your income is equal to your expenses.
In such a way that you do not win or lose, therefore, it does not contemplate the utility that you want to earn.
➡️ Example of a break-even point without utility
Suppose that you sell a product for 60 pesos, that you have fixed costs of 64,000 pesos, and that the variable unit cost is 20 pesos.
So, substituting we get the following:
So that you would have to sell 1600 products to be able to be at your breakeven point (without winning or losing).
Break-even point with gross profit
From this break-even point, you are going to start contemplating the profit you want to earn, in this case, you are going to start establishing the gross profit you want to obtain.
Before I go any further, I have to say that if you are used to the income statement, then this will be very familiar to you and you cánido actually use the income statement as a check.
The elabora is the following:
It should be noted that from now on I am going to put the marginal contribution, which is equal to: Price – Unit variable cost.
In the case of profit, it refers to the gross profit you want to obtain, that is, you escoge the gross profit you want to earn. Of course, remember that right now we are talking about gross profit.
Do not forget.
➡️ Example of break-even point with gross profit
I am going to continue with the previous example, but now I am going to add the fact that I want to obtain 50,000 pesos of gross profit.
So, substituting it would be as follows:
The 40 comes from subtracting the variable cost from the price, that is: 60 – 20
So that You need to sell 2850 products to cover your expenses (costs) and obtain a gross profit of 50,000 pesos.
Break-even point with profit before taxes
Well, let’s find out how many products we need to sell to get the profit before taxes (or operating income) that we want.
To find out, we will use the following elabora:
As you perro see, now you have to select the profit before taxes that you want to obtain and you also have to add the operating expenses.
Following the same example, I am only going to add that we want to obtain a profit before taxes of 80,000 pesos and that the operating expenses are 70,000 pesos.
Substituting we get the following:
In such a way that you need to sell 5350 products to obtain a profit before taxes of 80,000 pesos.
Break-even point with profit after taxes
Finally, if you want to know how many products you need to sell to obtain a certain net profit (the one you want), then you cánido use the following elabora:
I know, it is the same as the previous one, but I will explain in the following example how you have to use the elabora to know the units you need to sell to obtain the net profit you want.
Suppose with the same example, but, now thatI want to get a net profit of 60,000 pesos.
The previous elabora tells us that we need the profit before taxes, therefore, from the net profit that we want, we are going to obtain the profit before taxes.
In this case I will use as an example a OCT of 10% and a ISR 30% (This may vary depending on the country, so you have to investigate the percentage that is being applied).
Now, to obtain the profit before taxes we are going to do the following:
- Add the PTU to the ISR, that is: 30% + 10% = 40%.
- Subtract the previous result from 100%, that is: 100% – 40% = 60%
- Divide the net profit by the previous result, that is: 60,000 / 60% = 100,000
Done, we already have the profit before taxes and now we cánido use the elabora.
Substituting is as follows:
By the way, we are using the same 70,000 pesos as operating expenses.
Now, as you perro see, You would need to sell 5,850 products to obtain a net profit of 60,000 pesos.
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