Break-Even Sales

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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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We have realized significant cost reductions in all departments and believe we have lowered our quarterly breakeven sales level to approximately $21- $22 million.
Once we know your gross profit percentage, and once we know your fixed expenses, we can start to understand breakeven sales.
The resulting equation is then manipulated to measure a product's financial attributes, such as its breakeven sales quantity or the sales required to earn a given profit or profit margin.
We estimate that at 8% of sales, it will generate an additional $1 million in profit to our system of restaurants with a low breakeven sales hurdle.
Today we have taken a major step in further streamlining the company structure to accelerate decision making, enhance operational efficiencies, and reduce breakeven sales to position the Company for profitability.
Over the first three quarters of the current fiscal year, we have reduced ongoing annual operating expenses by approximately $25 million and reduced the quarterly cash breakeven sales level to approximately $75 million.
Although we're not happy with our loss for the quarter, it was expected as our product mix contributed to below breakeven sales levels," stated John F.
The new facility should be at a breakeven sales rate by the end of the first quarter of 2005.
Most of the branches that we opened in fiscal 2001 are projected to attain breakeven sales volumes by the summer of 2002, and the poorest performer of those branches will be integrated into our other Texas operations in the fourth quarter.
During the fourth quarter, we restructured the company to take our pro forma breakeven sales down to $195 million.
The softness in the industry this year has affected us by extending the time it will take for several stores that we opened last year to attain breakeven sales volumes.