Can I run a break even scenario?

How to know if you break even, based on prices

How does it work?

Enter the product sales price, average units purchased, unit cost and shipping cost. Click submit. A chart appears on the right.

Graphical user interface, application

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What is the formula?

Here is the formula?

  1. Obtain the total cost: (ProductUnitCost * NumberOfUnitsPurchased)
  2. If there is shipping cost, subtract it from the sales price: (SalesPrice - shipping cost) * AverageUnitsSoldPerMonth
  3. Obtain total sales per month: totalSalesPerMonth = (SalePrice * AverageUnitsSoldPerMonth)
  4. Loop through each month. Once you sell all your units, the graph stops. The graph shows a maximum of 12 months.

What fields are available?

Here are the fields:

Field Name Field Description
Sale Price The amount the customer pays to buy the product.
Average Units Sold Per Month The number of units sold on average per month.
Numbers of Units Purchased Numbers of units residing in inventory
Product Unit Cost Cost per unit to buy items from the vendor
Shipping Cost Cost per unit to ship to the customer