Break-Even Sales

Break-Even Sales

The revenue from sales necessary to cover costs and prevent a firm from operating at a loss. The breakeven sales may be relatively stable or may fluctuate, depending on the company or industry. Companies with high breakeven sales points tend to have large fluctuations in earnings from year to year.
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The last two windows have also seen a greater 'balancing of the books' with Solskjaer's reign actually seeing more money come in from transfers than going out, thanks in main to the virtual break-even sales of Steven Caulker and Gary Medel as well as the profits from Mutch's departure to QPR.
In this example, my gross profit percentage is 40 percent and my break-even sales would be $475,000 ($170,000 divided by 0.
We have considerable supplying capacity, but there is an extremely large gap between the break-even sales level and our actual sales figure,'' he told reporters.
We are reducing our operating expenses in order to reduce our working capital needs and break-even sales level.
The company aims to reach break-even sales of $800,000 this year.
How does a company compute its break-even sales level?
a) Break-Even Sales (Units) = Fixed Costs/Unit Contribution Margin Break-Even Sales (Units) = $50,000 = 25,000 units $2 12.
Our annualized break-even sales volume, for example, has been reduced from close to $370 million in early 1981 to an estimated $185 million for the fiscal year '84.
After restoring employee compensation as of January 1, 2010, the Company's annual break-even sales level is approximately $93 to $95 million, depending upon gross margin levels.