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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Reportedly, the company has realised significant cost reductions in all departments and expects to lowered its quarterly breakeven sales level to approximately USD21m to USD22m.
Once we know your gross profit percentage, and once we know your fixed expenses, we can start to understand breakeven sales.
The breakeven sales point has been reduced upon cost structure reviews, the agency said.
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.
The total cost function presented in Equation 1 is indeed economic cost, as evidenced by the preceding explanation that "A construction of costs and revenues utilizing elementary microeconomic tools (emphasis added) facilitates a comparison of the firm's breakeven sales volume to the volume of sales at which the artist is recouped" (Papadopoulos 2004, 91).
Where BSP is the breakeven sales price of the stock (a sales price exceeding this amount favors waiting for long-term status), AD is the adjusted basis of the stock, CGR is the capital gains tax rate, CSP is the current sales price of stock, and OTR is the ordinary income marginal tax rate.
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.
A construction of costs and revenues utilizing elementary microeconomic tools facilitates a comparison of the firm's breakeven sales volume to the volume of sales at which the artist is recouped.
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.
The new facility should be at a breakeven sales rate by the end of the first quarter of 2005.
These added expenses, which will include amortization of the acquired intangibles, should increase our breakeven sales level to around $60 million.