Retail Formulas
- Acid - Test Ratio»
- Average Inventory»
- Basic Retailing Formula»
- Break - Even Analysis»
- Contribution Margin»
- Cost of Goods Sold»
- Gross Margin»
- Gross Margin Return on Investment»
- Initial Markup %»
- Inventory Turnover»
- Maintained Markup»
- Margin %»
- Markup»
- Net Sales»
- Open to Buy»
- Percentage Increase/Decrease»
- Quick Ratio»
- Reductions»
- Sales per Square Foot»
- Sell - Through Rate»
- Stock to Sales Ratio»
Break Even Analysis
The break-even point for a product is the point where total revenue received equals the total costs associated with the sale of the product. A break-even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed to attempting to modify an existing product instead so it can be made lucrative. Break even analysis can also be used to analyze the potential profitability of an expenditure in a sales-based business.
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