The Break Even Point is a crucial measurement for business and is often over looked.

Your Break Even Point is essentially:
 

1.    The point of zero profit and loss, i.e., where the revenue equals the costs; or
2.    The amount of money you are required to earn (your sales) that will cover all of your out goings.

Your Break Even Point can be calculated as follows:

Break Even Point = FE / (Revenue – COGS) / Revenue

FE – Fixed Expenses
COGS – Cost of Goods Sold

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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