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 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.