Wang, the former boss, watched the store continue to lose money and was at a loss. He doesn't know how to turn losses into profits, nor does he know what the break-even point of the shop is. So what is the break-even point? Breakeven point is what we often call breakeven point. When the sales revenue is higher than the break-even point, the store will make a profit. On the contrary, when the sales revenue is lower than the break-even point, the store will lose money.
Expressed by a formula, it is equal to fixed cost /( 1- variable cost rate), and then multiplied by (1+ value-added tax rate) to convert it into tax-included sales. The calculation is very simple and practical.
If you are a business operator, we must know this.
The significance of the existence of key indicators
If you are a financial officer, in addition to understanding the meaning of indicators, you need to master its algorithm skillfully, provide detailed financial analysis and evaluation reports for newly opened stores, so as to win in advance and let the stores win at the starting line with the wisdom of financial officers.