Breakeven Analysis

d.light Products
Amounts shown in FJ dollars (Yearly)

Sales

$$
Sales price per unit
S250
S10
S1
Sales volume per period (units)
Total Sales

Qty

Unit Cost
1,000
750
750
2,500

Variable Costs

95.00
35.00
25.00

$$
Supplier cost for S250
Supplier cost for S10
Supplier cost for S10
Other variable costs per unit
Total Variable Costs

65.7
22.7

1,000
750
750

18.55
0.25

Contribution Margin

Fixed Costs Per Period

$$

Administrative costs
Insurance
Rent
Marketing Expenses
Other fixed costs
Total Fixed Costs per period
Net Profit (Loss)

Break Even Results:

Total Break Even $$
Break Even in Units
s250
s10
s10

item
s250

104,007.02
743
557
557

Y1 forecast demand

Selling Price

Variable Cost

1,000

95.00

65.95

Total Variable
Cost
65,950.00

s10
s1

750
750

Jan
Feb
March
April
May
June
July
August
September
October
November
December

35.00
25.00

Sales Forecast Breakdown

s250
S10
1,900.00 $
175.00
2,850.00 $
350.00
3,800.00 $
700.00
4,750.00 $
1,400.00
5,700.00 $
1,750.00
6,650.00 $
2,100.00
7,600.00 $
2,450.00
8,550.00 $
2,800.00
10,450.00 $
3,150.00
11,875.00 $
3,500.00
14,250.00 $
3,850.00
16,625.00 $
4,025.00
95,000.00 $
26,250.00

$
$
$
$
$
$
$
$
$
$
$
$
$

22.95
18.80

$
$
$
$
$
$
$
$
$
$
$
$
$

17,212.50
14,100.00
97,262.50

S1
125.00
250.00
500.00
1,000.00
1,250.00
1,500.00
1,750.00
2,000.00
2,250.00
2,500.00
2,750.00
2,875.00
18,750.00

$
$
$
$
$
$
$
$
$
$
$
$
$

Total Sales
2,200.00
3,450.00
5,000.00
7,150.00
8,700.00
10,250.00
11,800.00
13,350.00
15,850.00
17,875.00
20,850.00
23,525.00
140,000.00

Break Even An
160000
140000
120000

FJ$$

100000
80000
60000
40000
20000
0

Jan

Feb

March

April

May

2200

5650

10650

17800

26500

Total Cost

$4,173.58

$9,215.42

$15,334.25

$22,947.58

$31,637.92

Fixed Cost

$2,645.83

$2,645.83

$2,645.83

$2,645.83

$2,645.83

Variable Cost

$1,527.75

$2,396.00

$3,473.00

$4,967.50

$6,044.50

Sale

Variable Cost

$1,527.75

$2,396.00

$3,473.00

$4,967.50

$6,044.50

$$
Total Cost
95000
26250
18750
140,000.00

$$
65700
17025
13913
625
97,263
42,738

$$
2,000
1,250
2,000
25,000
1,500
31,750.00
10,987.50

Total Costs

(V/P)

1-(V/P)

97,700.00

0.69

0.31

Y1 forecast
Sale $$
$95,000.00

% of sale
0.68

48,962.50
45,850.00

Cumalative Sales
2200
5650
10650
17800
26500
36750
48550
61900
77750
95625
116475
140000

0.66
0.75

Jan
Feb
March
April
May
June
July
August
September
October
November
December

0.34
0.25

$
$
$
$
$
$
$
$
$
$
$
$
$

$26,250.00
$18,750.00
$140,000.00

s250
1,319.00
1,978.50
2,638.00
3,297.50
3,957.00
4,616.50
5,276.00
5,935.50
7,254.50
8,243.75
9,892.50
11,541.25
65,950.00

$
$
$
$
$
$
$
$
$
$
$
$
$

0.19
0.13
1.00

Expenses Forecast Breakdown

S10
S1
114.75 $
94.00
229.50 $
188.00
459.00 $
376.00
918.00 $
752.00
1,147.50 $
940.00
1,377.00 $
1,128.00
1,606.50 $
1,316.00
1,836.00 $
1,504.00
2,065.50 $
1,692.00
2,295.00 $
1,880.00
2,524.50 $
2,068.00
2,639.25 $
2,162.00
17,212.50 $ 14,100.00

Break Even Analysis

May

June

July

August

September

October

November

26500

36750

48550

61900

77750

95625

116475

$31,637.92

$41,405.25

$52,249.58

$64,170.92

$77,828.75

$92,893.33

$110,024.17

$2,645.83

$2,645.83

$2,645.83

$2,645.83

$2,645.83

$2,645.83

$2,645.83

$6,044.50

$7,121.50

$8,198.50

$9,275.50

$11,012.00

$12,418.75

$14,485.00

$6,044.50

$7,121.50

$8,198.50

$9,275.50

$11,012.00

$12,418.75

$14,485.00

weighted Contribution
0.21

0.06
0.03
0.31

recast Breakdown
Total Variable Costs
$
1,527.75
$
2,396.00
$
3,473.00
$
4,967.50
$
6,044.50
$
7,121.50
$
8,198.50
$
9,275.50
$
11,012.00
$
12,418.75
$
14,485.00
$
16,342.50
$
97,262.50

November

December

116475

140000

$110,024.17

$129,012.50

$2,645.83

$2,645.83

$14,485.00

$16,342.50

Fixed Cost
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 2,645.83
$ 31,750.00

$
$
$
$
$
$
$
$
$
$
$
$
$

Total cost
4,173.58
5,041.83
6,118.83
7,613.33
8,690.33
9,767.33
10,844.33
11,921.33
13,657.83
15,064.58
17,130.83
18,988.33
129,012.50

Cumalative costs
$
4,173.58
$
9,215.42
$
15,334.25
$
22,947.58
$
31,637.92
$
41,405.25
$
52,249.58
$
64,170.92
$
77,828.75
$
92,893.33
$
110,024.17
$
129,012.50

$14,485.00

$16,342.50

Breakeven Analysis
Monthly units break-even
s250
s10
s10
Monthly sales breakeven

Monthly
62
46
46
8,667

Assumption
Average per-unit revenue
Average per-unit variable cost
Estimated monthly fixed cost
PROFIT AND LOSS STATEMENT
SALES
Less Cost of Goods Sold:
GROSS PROFIT

5.75
3.9
4883
Year 2012
$140,000

Year 2013
$154,000

Year 2014
$169,400

97,263
42,738

51,000
103,000

51,000
118,400

2,000
1,250
2,000
25,000
1,500
31,750
10,988
3,296
7,691

2,000
1,250
2,000
17,000
1,500
23,750
79,250
23,775
55,475

2,000
1,250
2,000
10,500
1,500
17,250
101,150
30,345
70,805

2010
$
5,000
15,000
5,000
25,000
17.86%

2011
$
2,000
10,000
5,000
17,000
11.04%

2012
$
1,000
6,000
3,500
10,500
6.20%

Less Operating/Admin/Finance Expenses:

Administrative costs
Insurance
Rent
Marketing Expenses
Other fixed costs

Total Expenses
OPERATING PROFIT
Less Tax
NET PROFIT

Marketing Expense budget

Website
Advertising
Printed Materials
Total Marketing and Sales expenses
Percentage of sales

Sale Projection
SALES

Year 2012
$ 140,000.00

Year 2013
$ 154,000.00

Year 2014
$ 169,400.00

Expenses Projection

Year 2012
$ 2,000.00
$ 1,250.00
$ 2,000.00
$ 25,000.00
$ 1,500.00
$ 31,750.00

Year 2013
$ 2,000.00
$ 1,250.00
$ 2,000.00
$ 17,000.00
$ 1,500.00
$ 23,750.00

Year 2014
$ 2,000.00
$ 1,250.00
$ 2,000.00
$ 10,500.00
$ 1,500.00
$ 17,250.00

Administrative costs
Insurance
Rent
Marketing Expenses

Other fixed costs

Total Expenses