I need to be able to calculate the break-even ($0) at month's end. The problem is that as Gross Revenue increases, Parts Cost increases. In the example below, I manaully caclulated that the monthly break-even number is $52,217.42 but I would like to be able to automate this.
Year One Monthly Revenue Break Even Number $52,217.42
Gross Revenue 50% Parts Monthly Liability Total Liability Month End
Month $40,000.00 $20,000.00 $26,108.71 $46,108.71 -$6,108.71
Thanks,
Matt
Hi
Can you please show how you calculated the breakeven at $52,217.42
Cheers
$26,108.71 * 2 = $52,217.42
This looks to me like more of an algebra problem than an Excel problem. I don't see enough information to fully solve the problem. Here's what I see.
Month end=gross revenue-parts liability-other liability
parts liability =0.5*gross revenue
other liability = ??? = 26108.71
month end=gross revenue-0.5*gross revenue-26108.71
set month end=0 and solve for gross revenue.
If you need an algebra refresher: http://www.purplemath.com/modules/solvelin.htm
As indicated, I am not sure how other liability and total liability are calculated. Once that is known it should be as easy as solving the algebra problem for gross revenue and putting the formula into Excel. Can we assume you can do the algebra?
Originally Posted by shg
Thank's all. Probably not best to wrap my head around this stuff too late at night. The liability is a fixed cost and not affected by the Parts fluctuation as that's tied to Revenue.
Cheers,
Matt
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
LinkBack URL
About LinkBacks
Register To Reply
Bookmarks