The point of equilibrium.
The calculation of the point of balance of your business is very important, pues determinar el nivel de ventas necesario para cubrir todos los costos.
This will then be our starting point. Conociendo las unidades necesarias para cubrir los costos fijos y variables, We can project how much more must produce and sell to get desired profitability.
From the above we can deduce that the calculation of the equilibrium point is a simple formula:
income = fixed costs + variable costs
However, in practice, identificar estas variables no es tan simple y requerirá de un análisis profesional para poder obtener resultados confiables.
Usually, the break-even point is calculated based on physical units, but, ¿Qué pasa cuando nuestra empresa es de servicios?. Puesto que no fabricamos productos, then it will be difficult to calculate a balance in terms of physical units. However, in this case, el punto de equilibrio lo calcularemos en base a la cantidad de horas trabajadas.
In difficult cases, You can calculate a balance in terms of total revenue.
Fixed costs are those that, sin importar el volumen de producción, they do not change month-to-month. Como ejemplo podemos mencionar:
- Salary of employees.
- Office leases, local, Workshop, etc.
- ISSS and AFP.
- Phone base cost, connection to Internet, cellular, etc.
- Site web hosting.
- Payment for services of accounting for the company.
- etc.
Variable costs, On the other hand, son proporcionales al volumen de producción. Example:
- Indirect inputs.
- Material raw.
- Cost of electricity.
- Cost of phone calls.
- Stationery.
- Fuel.
- Overtime.
- Commissions from sale
- etc.
Is vitally important to control fixed costs, since they hit strong company, When sales fall for any reason, whether internal or external.