You are correct and that satisfies most clients. It can be a simple calculation or a
complicated calculation. Most clients only need the simple calculation.
--- In taxchat@yahoogroups.com, "Michael S. Mermelstein, CPA" <mike@...> wrote:
>
> 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 <mailto:taxchat%40yahoogroups.com> .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 <mailto:taxchat%40yahoogroups.com> .com
> [mailto:taxchat@yahoogroups <mailto:taxchat%40yahoogroups.com> .com] On
> Behalf Of
> > Clarisse
> > Sent: Monday, December 08, 2008 6:56 PM
> > To: taxchat@yahoogroups <mailto:taxchat%40yahoogroups.com> .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 <mailto:taxchat%40yahoogroups.com> .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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