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09 Desember 2008

RE: [taxchat] Re: Break even point

Most client's are interested in a "cash" break even.  How much do I have to sell to pay the bills.  In that case, you would omit depreciation & amortization.  When preparing a longer range projection, you would factor in cash needs for replacement and upgrades.
 
Michael S. Mermelstein, CPA
Miami, FL


From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Clarisse
Sent: 12/09/2008 Tue 7:48 AM
To: taxchat@yahoogroups.com
Subject: [taxchat] Re: Break even point

As long as you have taken into consideration all costs then you are
moving in the right direction.

total expenses + overhead costs / (units sold, hours sold, seats
filled, etc.) will give you a general BE. This can also be more
precise too.

--- In taxchat@yahoogroups.com, "Debbie Wilson" <preferrd@...> wrote:
>
> Client wants to know how much he in sales he needs per week to
break even.
> I did it both ways.
>
> Debbie Wilson
>
> -----Original Message-----
> From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On
Behalf Of
> Clarisse
> Sent: Monday, December 08, 2008 6:56 PM
> To: taxchat@yahoogroups.com
> Subject: [taxchat] Re: Break even point
>
> Not to complicate things but there are several break-even point
> possibilities, what are you calculating BE for? And are you are
using
> the Depreciation and Amortization as part of the overhead costs?
>
>
> --- In taxchat@yahoogroups.com, "Debbie Wilson" <preferrd@> wrote:
> >
> > I am doing a report to show what the break even point is on a
> weekly basis
> > for a client that I have. I am including Depreciation and
> Amortization even
> > though they are paper entries because they represent the cost of
> the fixed
> > assets. Is this the correct way to calculate it?
> >
> >
> >
> > Sincerely,
> >
> >
> >
> > Debbie Wilson EA
> >
> > Preferred Accounting
> >
> > 420 E Beloit St.
> >
> > Darien, WI 53114
> >
> >
> >
> > 262-724-3635 Tel
> >
> > 262-724-5645 Fax
> >
> >
> >
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