Breaking Even

Larry Janesky: Think Daily

How much do you have to sell to break even now?

Fixed costs (overhead) divided by gross margin as a %.  

Example – If it costs you $50,000 a month for rent, loan payments, office salaries, utilities , insurance, etc. and your gross margin on sales is 40%, then $50,000/.4= $125,000 a month.  So if you sold and delivered $125,000, and collected all the money, you make zero.  

What’s your break-even now?

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