Profit Pros® Break Even Analysis is designed to help businesses reevaluate their price points. The analysis determines what the breakeven point is and what it will take to achieve profitability and a reasonable profit margin for prospective or existing products and services. There are three determining factors analyzed in this program: expenses, possible price points, and quantity.
Take a look at the results below, from a real example of a Break Even Analysis program. In this example, it took careful planning to get the right balance between pricing and quantity sold to coincide with all of the associated expenses; as you’ll see, the end result proved to be very viable and profitable.
In this example, the first bar chart displays the business revenue streams and tentative price points. The second chart displays the forecasted quantity, while the third displays the forecasted annual business revenue totals in each category.
This final chart displays the total forecasted and actual revenue vs. the total expense (or burn rate), as well as the net business profit.
