Break Even Analysis Template shows complete information regarding a financial result which shows us profit and loss after each calculated data is finished. As we know all Break even Analysis Template is widely used in capital and smaller business companies. This template is for getting results of costs that you sell or buy in order to gain profit. In short, you can use this template for the purpose of analyzing the total variable and fixed costs per period.
You can understand the template clearly if you have a good command of business matters. But don’t worry if you are seeking business terms and running methodologies. Here we are representing a template Breakeven Analysis with Chart to provide you an additional understanding of the template via this article. So let’s begin the complete Study of Breakeven Analysis template and its Chart.
How To Calculate Break Even Analysis?
In this section, you will see the price of selling units per period. If the price of a single unit is 12.50, then the total price of 1000 units would be 12,500 per period. In the template, you can read about sales price per unit, sales volume per period(units), and finally the result of Total Sales in the last of the above-mentioned total sales.
Variable Costs can be understood as ” not fixed costs but likely to change”. This is very obvious. The followings are written in the template:
Commission Per Unit:
As you know the Commission is an amount of money which you pay to the employees for selling units. Thus, Commission Per Unit means a fess that is paid to employees. Because employees sell your units. That’s it.
Direct Material Per Unit:
Next after the commission per unit is the price of direct material per unit written in US dollars.
Shipping Per Unit:
It is the price of goods which you sell or send to the stores or markets.
Supplies Per Unit:
It is the number of units that you supply to the agents.
Other variable costs per unit:
It is the amount that can likely be changed.
Total Variable Costs:
Sum of total costs by calculating the total amount of all above given options.
Fixed Costs Per Period:
In this segment, you will add the final amount by following the given instructions. Options like: Administrative Costs, Insurance, Property Tax, and Rent are easy to understand. As you will see total profit or loss in this section. It means what you have gained or lost while selling or buying and by other charges, you will get all the results in this section. This option is used for analyzing the total fixed costs per period. Unlike variable costs, you will understand the true data of your expenditure per cycle.
As result, there is no false or variable amount of your total expenditure. This is very important for you to know where you have been mistaken while calculating the total charges of sales per unit.
Break-Even Analysis Chart Template:
Now you have carefully studied the article and all-important points with definitions of the terms written above. Therefore, now you can also analyze or read the Break-even analysis chart easily. In this chart, you have been given only the information about fixed costs per period in the blue arrow, total costs in the pink line, and total sales in light maroon colors. Through this chart, you will simply understand the total costs per period.
Break-even analysis template and chart help in understanding your total costs which you have been expending on sales and other infrastructure materials like units or insurance and material charges. For saving your precious time, we always comprehend the information and convert it into definitions so that you can fully precise the meaning of templates in the passage of time.