Break-Even, Target Profit and Margin of Safety

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Fixed costs in the period $

Price per item $

Variable cost per item $

Profit you want optional, $

Sales you expect optional

Try another price optional, $

Enter your numbers, then press Calculate.

From the book, Chapter 5. Tess’s shop: $3,600 a month of fixed costs and $12.80 of contribution per candle: 281.25, so 282 candles, or $5,062.50 of sales. To pay herself $2,500 she needs 477. At 400 candles the margin of safety is 29.7%. At $16 a candle, break-even jumps to 334.

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