Hi
I am not very good at math, and if possible worse in calc.
I would need a formula to calculate a breakeven point.
Scenario
I have:
some fixed costs (rent/lease, mold, tooling, machinery)
some per unit costs (material, single packaging, components, etc.)
multiple packaging, i.e. 10 pieces of unit with single package put in a box
How do I calculate the breakeven point by changing unit price (recharge percentage).
example
fixed costs
mold for main body = 10000
rent per year = 12000
per unit costs
main body material = 6 (this will be added to the cost of mold diveded by the units made)
screws = 1
screen = 25
battery = 5
cable = 3
plastic wrap = 1
mixed cost?
box containing 10 units = 2
Thank you
Breakeven formula
Re: breakeven formula
The simple answer is Total costs / # of units
How you calculate the Total costs is, I suspect, not as simple as adding up your costs, as you need to recalculate things like your rent so that they are relevant to the number of units, not the number of months.
The simple way of doing that, is to divide the rent by the number of units per year, but then you have the difficulty of determining how many units per year you're going to do.
As an example, given the current Covid-19 situation, if your units were ventilator masks and you were doing 500/day before Covid-19, now you might be doing 5,000/day, so your costs/day for making the masks is going up, but you're making far more masks in the same amount of time. thus the amount of rent you allocate to each mask will drop.
How you calculate the Total costs is, I suspect, not as simple as adding up your costs, as you need to recalculate things like your rent so that they are relevant to the number of units, not the number of months.
The simple way of doing that, is to divide the rent by the number of units per year, but then you have the difficulty of determining how many units per year you're going to do.
As an example, given the current Covid-19 situation, if your units were ventilator masks and you were doing 500/day before Covid-19, now you might be doing 5,000/day, so your costs/day for making the masks is going up, but you're making far more masks in the same amount of time. thus the amount of rent you allocate to each mask will drop.
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