The Break Even Point is literally the dollar amount that covers all the expenses and the profit begins. You will get Break Even Points in both number of units and amount of revenue in dark green cells below targeted selling price row. This number corresponds with a number of employees, company space, machine investment for depreciationand many other expenses category that will be classified as Fixed Costs.

About tax planning and corporate structure. New scenarios can be created quickly and inexpensively as circumstances change. Unfortunately using your cash flow to solve problems means that you risk spending beyond the revenue and you will lose your business. With this option you can quickly decide If the start-up budget is adequate.

Still, there are many things that have to be considered to gain more profit and it could be different among different type of businesses.

Take charge of your restaurant with successful management By The Numbers! One month is a common period to measure it. It is based on input from you assumptions about sales volume, pricing, payroll, etc. So how do you determine the Break Even Point?

Just enter all of your expenses in the correct budget category, and then let the workbook do all of the calculations for you. You can call the difference as Profit Margin.

Feel free to modify this template since it is fully editable. Starting with the individual menu item, we end up with a full set of financial statements and powerful data reports for analysis and decision making. If your menu plan and day part plans will not generate revenue sufficient to get the restaurant to BEP, then you must reduce your expenses to generate profit.

The break-even point formula is calculated by dividing the total fixed costs of production by the price per unit less the variable costs to produce the product.

Variable Cost Table Then, you can put variable costs for the products. You can select the cells to see where the formulas are linked. It is simply an MS Excel formatted workbook. As you assemble your business plan and budgets prior to opening your restaurant, you must calculate your BEP so you know exactly when your restaurant will begin to show a profit.

It is better to know that before you incur long term expenses, than to try to increase revenue later to overcome your expenses. Knowing the Break Even Point will help your planning. By The Numbers is about operating a profitable restaurant. You probably have these numbers already available in your budget or in an Excel workbook.

The formula format is similar with logic that has been explained in the second paragraph.

Projections for up to five years can be easily calculated. Without sound fiscal management, cash flow spending can continue until a crisis exposes the cash flow short fall or the expenses over run the cash flow. Loan Amortization Schedules five year Chart Comparison of Income Statements This set of charts, calculations, and statements generated from Microsoft Excel and designed to give you a detailed view of the present financial needs and potential performance of a typical single restaurant operation.

There are many materials that can be classified in this Variable Cost category.

This is the value that you can adjust by considering all expenses as well as competitor price. On the other hand, if you produce less mobile phones, you need to purchase less. This Break Even Point analysis template calculates break even point only. The second page shows all of your results and the BEP that you must hit to profit.

On the other hand, your company suffer loss if it failed to reach that break even point number. The excel formula will calculate the total cost needed to produce all units.

You can modify current category in this template. This package is not offered for resale commercial use. If you produce more mobiles phones, you need to purchase more. It must be higher than fixed plus variable cost per unit.Sep 05,  · Know your Break Even Point Knowing your restaurant’s Break Even Point is the most fundamental number that you must know.

This is the set of linked restaurant business plan template spreadsheets that are used to generate the restaurant modeling reports.

They were created using MS Excel while building a restaurant business plan for a medium-size full-service operation.

Gabri's Restaurant & Lounge fine dining restaurant business plan financial plan. Gabri's Restaurant & Lounge is a fine dining establishment in Long Branch, New Jersey.

For our Break-Even Analysis, we assume running costs include our full payroll, rent, and utilities, and an estimation of other running costs.

/5(). Operations Plan; Management Organization; Capitalization/ Financial Plan; Discuss. Proposal #XXX Business Plan Template.

Break-Even Analysis Spreadsheet Example. Finding Sales Mix %: In this part, the goal is to find current products sales mix, which will be used in the analysis.

You need to input the price and number of units sold/services. This Break Even Point analysis template calculates break even point only. You need a financial plan spreadsheet to plan more carefully and see it map in one year or particular period.

Feel free to modify this template since it is fully editable.