Breakeven = Fixed Cost / Gross Profit Margin

Larry Janesky: Think Daily

Your fixed costs are cost you’d have to pay even if you did not sell anything this month.

Your gross profit margin is the percentage of revenue you have leftover after you have paid all direct cost you incur BECAUSE you sold something.  For example materials, labor, packaging, etc.

What is your monthly breakeven?

Figure it out.

 

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