Instruction
1
To determine the threshold of profitability is possible in two ways: analytical and graphical.
The analytical method of calculation of this indicator should follow the following formulas:
The profitability threshold = Spost/Cal shaft.margin

Where Spot – constant expenses,

Cal shaft. Margin – the gross margin.
Shaft. Margin = – Spar,

Where is revenue,

Sper – variable costs.
Cal shaft.margin = Val.margin/V.
2
Of these formulas you can get one complete for finding the threshold of profitability:

The profitability threshold = Spot*In/(- Sper).
3
Using this graph, the threshold of profitability find. On the OY axis tick fixed costs. Draw a line of constant costs, parallel to the OX axis.
4
On the x-axis – the volume of sales. Select any point on the OX axis. For the selected sales calculate the fixed and variable costs. Build direct, satisfying pre-defined value.
5
Again make a note of any point of sales on the x-axis. For this value, find the sum of revenues and also build directly on these values.
6
On the chart the profitability threshold (break even point) will be a point in the intersection of the straight lines constructed pursuant to paragraph 4 and 5 of this manual. Break shows at what value revenue and total cost profit of the enterprise does not have and is equal to zero.