Break-Even Analysis Apple Numbers Template is a document which helps you to calculate financial feasibility for launching a new product or starting new ventures. This template consists of predefined formulas and automatically calculates the Break-Even Point in terms of units and Break-Even sales.
Let us understand the purpose of Break-Even Analysis.
What is Break-Even Analysis?
Break-Even Analysis is a metric used to determine the number of units or sales at which revenues will equal expenses. It is often used to calculate the financial feasibility of any new product which is going to be launched or any business startup.
Break-Even Point is defined as the point at which an investment will start generating positive returns. Hence, you can consider the point when Total Cost equals Total Revenue. Break-Even Point is calculated in term of units or amount of sales.
Break-Even Point = Fixed Costs / (Sale price per unit – Variable Costs)
In simple terms, the purpose of doing break-even analysis is to calculate the point at which Total Cost equals Total Revenue.
To calculate this, you must first differentiate your fixed and variable costs. Fixed costs are those that do not change with output and remain the same when there is no production. Variable costs are those costs that change with output. They are nil when production is zero.
Break-Even Analysis Apple Numbers Template
To simplify this process, we have created Break-Even Analysis Apple Numbers Template with predefined formulas. Just enter your relative figures and the template will automatically calculate the break-even point in terms of units and break-even point in term of sales for you.
You can also download the same in Microsoft Excel from the link below:
In addition to the above, you can also download other HR templates in Apple Numbers like Salary Sheet Apple Numbers Template, Cost Per Hire Calculator Apple Numbers Template, Over Time Calculator Apple Numbers Template and much more.
Let us discuss the contents of the template in detail.
Contents of Break-Even Analysis Apple Numbers Template
Break Even Analysis Apple Numbers Template consists of 4 sections:
- Break Even Analysis Details
- Fixed Costs
- Variable Costs
- Break-Even Analysis Calculations
1. Break-Even Analysis Details
This section consists of details like break-even period, selling price per unit, Break Even Point in terms of units and sales. Break-Even points are calculated in the last section and the figures are displayed in respective cells.
2. Fixed Costs
Fixed costs are those that do not change with output and remain the same when there is no production. These fixed costs include rent, salaries, insurance premiums, loan repayments etc. These costs do not change even when there is no production.
3. Variable Costs
Variable costs are those costs that change with output. These costs include the cost of goods sold, Direct labor, other overhead expenses etc. These costs change with the change of production. If production is fewer variable costs are less and if high then high.
4. Break-Even Analysis Calculations
Calculation of a breakeven point (BEP) is based on the linear Cost-Volume-Profit (CVP) Model. It is a practical tool for simplified calculations and short-term projections.
Break-Even Units = Fixed Costs / (Sale price per unit – Variable Costs)
Break-Even Sales = Break-Even Units X Sale price per Unit
Thus, this template will help you to determine the sales revenue that you need to cover all startup costs and expenses to hit your break-even point.
We thank our readers for liking, sharing and following us on different social media platforms.
If you have any queries please share in the comment section below. I will be more than happy to assist you.