Accounting
Business Success via Managing Your Breakeven Sales
You earn $10 for every product you sell. We call this Product Margin. How many units of product must you sell to cover $100 of fixed expenses?
The answer is 10 units. This is Breakeven Sales.
Apply this to your business, this translates into minimum sales you need to do every month in order not to make a loss and before you can start making profits.
We call this Breakeven Sales.
What if this computed Breakeven Sales volume exceeds your capacity? Then there is no meaning in continuing in business, make sense?
What if by mid month, this Breakeven Sales volume is achieved ? It means every sale you make in 2nd half of the month will bring you pure profits! Simple?
What if you are able to increase the Product Margin? It means the number of Sales unit required to Breakeven will drop. This means lesser stress right?
Now, what if you are able to reduce your monthly Fixed Expenses, this also means the number of Sales unit required to Breakeven will drop. This also means lesser stress right?
Outsourcing your accounting can help you reduce your monthly accountant payroll cost by at least 70%.
Now, start action.
Action leads to more actions.
Thinking will only lead you to more Thinking.
If you need help, feel free to contact us at :
(M) +65 90880669
