A dollar in expense cost more than a dollar in sales.

Larry Janesky: Think Daily

BE = FC/GPM

If your fixed costs are $25,000 a month, and your gross profit margin is 40%, your monthly breakeven is $62,500 ($25,000/.4 = $62,500).  

What if you hired another employee in the office that made ($800 a week) $3,440 a month?  How much more do you have to sell and deliver and collect just to pay for that one employee each month?

Now what is your monthly break-even?

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