mohammed Miah
asked on
Multiple sales price break even analysis with one off costs
Hi Everyone
I was wodnering if anyone could kindly help please. I may go on a little bit but please bare with me. I am stuck on how to calculate this particular scenario.
A company charges its clients various different prices depending on the amount of sales per month as follows:
£0-300 sales / £30.00 fees per month
£301-600 sales / £60.00 fees per month
£601-1000 sales / £90.00 fees per month
£1001-2000 sales / £180.00 fees per month
£2001-3000 sales / £250.00 fees per month
£3001-5000 sales / £300.00 fees per month
£5001-7000 sales / £400.00 fees per month
£7001-10,000 sales / £500.00 fees per month
The company has a one off cost £300 per client to set up its clients.
the company has 15 clients and they all get charged different fees per month as they do not have the same sales figures per month.
My question is what would be the best way to have a formula where I can see the breakeven point for the company. As the company would only ever have a one off cost of £300 per client but have various sales revenue figures, I am finding it hard to think of how to do this.
I would very much appreciate it if someone could guide me to a formula. Thank you in advance 🙂
I was wodnering if anyone could kindly help please. I may go on a little bit but please bare with me. I am stuck on how to calculate this particular scenario.
A company charges its clients various different prices depending on the amount of sales per month as follows:
£0-300 sales / £30.00 fees per month
£301-600 sales / £60.00 fees per month
£601-1000 sales / £90.00 fees per month
£1001-2000 sales / £180.00 fees per month
£2001-3000 sales / £250.00 fees per month
£3001-5000 sales / £300.00 fees per month
£5001-7000 sales / £400.00 fees per month
£7001-10,000 sales / £500.00 fees per month
The company has a one off cost £300 per client to set up its clients.
the company has 15 clients and they all get charged different fees per month as they do not have the same sales figures per month.
My question is what would be the best way to have a formula where I can see the breakeven point for the company. As the company would only ever have a one off cost of £300 per client but have various sales revenue figures, I am finding it hard to think of how to do this.
I would very much appreciate it if someone could guide me to a formula. Thank you in advance 🙂
SOLUTION
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Shums Faruk
Are you trying to get Fees between Sales Figures like below image?
ASKER
Thank you for your responses :)
I dont think Iv managed to make myself very clear apologies for that.
What im trying to work out is If its costing me to set up a business £300 one off cost, and I charge them a monthly fee depending how much sales they make eg if they make £600 I will charge them £60.
Now if i had 10 businesses, all of them have £300 one off cost and they make £600 soo I will charge them £60 per month.
How long would it take for me to make my money back ? Thank you and again sorry for not making this clear
I dont think Iv managed to make myself very clear apologies for that.
What im trying to work out is If its costing me to set up a business £300 one off cost, and I charge them a monthly fee depending how much sales they make eg if they make £600 I will charge them £60.
Now if i had 10 businesses, all of them have £300 one off cost and they make £600 soo I will charge them £60 per month.
How long would it take for me to make my money back ? Thank you and again sorry for not making this clear
answered 5 months, 601 then it's only 3.3 Months
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ASKER
Thank you David and Shums for the attachment :)
There is litreally only one cost of £300, which is a one off. Thats the only major cost which includes other expenses.
I just couldnt figure out a formula where I could implement on excel to get break even or how long it will take to make my money back. I could charge a company £30 per month and that would take 10months to make my money back.
Another company might get charged £300 per month and would make my money back straight away.
Is there a what if formula for such a scenario? Im terribly sorry if I am confusing things. As you could imagine im a novice at this excel :(
There is litreally only one cost of £300, which is a one off. Thats the only major cost which includes other expenses.
I just couldnt figure out a formula where I could implement on excel to get break even or how long it will take to make my money back. I could charge a company £30 per month and that would take 10months to make my money back.
Another company might get charged £300 per month and would make my money back straight away.
Is there a what if formula for such a scenario? Im terribly sorry if I am confusing things. As you could imagine im a novice at this excel :(
I would advice, please attached your work around Excel.
ASKER
Thank you for your help so far guys 👍🏻
ASKER
Thanks guys for your help appreciate it :)