Break-even Point Analysis Using Financial Statements! (Excel Template Provided)

DY Management Research Institute

(Director Ryu Dae-young, Ph.D. in Business Administration/Business Consultant (Finance))

• YouTube: www.youtube.com/@dy-4714

• N Blog: https://blog.naver.com/udae025

• Email: daeyoung.lyu@gmail.com

This is Daeyoung Ryu, who runs the 'DY Management Research Institute' on YouTube and N Blog.

I would like to help those who are working in related fields based on my experience in the company and what I have studied in management. I will provide you with an approach that can help you in a very practical way, from cost, management, accounting, financial business plan, investment attraction, and overall management. If you would like to collaborate on a lecture I have posted or my area of expertise, please contact me by email!

※ Areas of expertise:

• Management/cost consulting, business review, financial business plan establishment, management simulation, financial projection for investment attraction.

• Excel practical training, data visualization using Excel, work efficiency using Excel. We will cut your work time in half.

• We welcome lectures/work requests/Q&As related to specialized fields and YouTube videos.

We provide break-even analysis lectures and Excel templates.

This Excel template is structured as follows:

※ Composition of break-even point analysis

- Reconstruct the income statement into fixed and variable costs

- Calculate contribution margin (rate) by deducting only variable costs from sales

- Profit simulation according to increase or decrease in sales

- Confirm sales volume to achieve break-even point

- Confirm sales volume to achieve target profit

※ We recommend this material to the following people.

- For those of you who are currently in deficit and wondering how much sales you need to make to break even

- For those who are making a profit but are curious about the sales volume needed to achieve the target profit

- People who want to maximize their profits but don't know how to approach it

- Those who are preparing to start a business and want to create a systematic business plan

Based on the company's income statement (or monthly expense/cost items and sales), divide it into fixed and variable expenses and use this to derive a formula that can predict profit based on sales. Through this formula, you can find out how much sales the company needs to break even and how much sales you need to make to achieve the desired profit.

It is not a difficult task. Even small and medium-sized businesses, restaurants, and other self-employed people can get one step closer to visible management if they just get this formula. You can make decisions only when you can see them.

Please see the figure below for more details.