Home Plumbing Contractor Free Plumbing and Heating Contractor Business Plan 8.2 Break Even Point Analysis
Felix and Michael of Central Plumbing and Heating are calculating the breakeven point in terms of the number of customer transactions it will take for them to cover the fixed costs of operating their business. Here is how this is being arrived at:
Each operating expense for the year is listed and then the amount of that percentage that is fixed is allocated.
In our sales projections we are estimating that even in a slow market environment the firm will be able to accomplish the following in sales:
Thus we can say with confidence that Felix and Michael will be able to meet and exceed their break even points in each year and slowly but surely build a successful business in Mecklenburg County, North Carolina.
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