Breakeven Sales Point Analysis Simple Version

What sales volume is required for your pharmacy to show a profit?

Use this tool to estimate the sales revenue and prescription count needed to reach your Revenue Breakeven Point, the point where you have neither profit nor loss. At the Breakeven Point you have sufficient sales revenue to cover merchandise purchases and all expenses. Exceed your Breakeven Point and you will have a profit; miss it and you have a loss. This Simplified Version assumes that your expenses are relatively fixed, regardless of changes in Revenues.

Annual Prescription Sales:

Annual Sales Revenue from your Income Statement

 $

Cost of Goods Sold:

Cost of Goods Sold from Income Statement

 $

Gross Profit Dollars:

 $

Total Expenses:

Total Annual Expenses from Income Statement

 $

Annual Prescription Count:

 $

Breakeven Point in Sales:

Annual Sales revenue required to achieve breakeven point

 $

Breakeven Point in Prescriptions:

Number of prescriptions required to achieve breakeven point on an annual basis

 %

Breakeven Point as a Percent of Annual Sales:

The percent of Annual sales needed to achieve Breakeven

 %
 

Your Results

Annual Sales exceeding the Breakeven Point in Sales results in profit and shortfall results in a loss. Use this information to set annual and monthly sales targets and to manage expense levels to achieve higher profitability. Note your Breakeven Point percent; this could indicate your vulnerability to sales shortfall due to competition, mail order, etc. As this approaches 100%, the more vulnerable your business is to a small decline in revenues resulting in a loss. If it is over 100% you should expect a loss.

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