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ARE WE MAKING ANY MONEY OR NOT? MONTHLY BREAK-EVEN ANALYSIS FOR SMALL RETAILERS
BibTeX
@MISC{Edwards_arewe,
author = {Robert Edwards and Royce Jones},
title = {ARE WE MAKING ANY MONEY OR NOT? MONTHLY BREAK-EVEN ANALYSIS FOR SMALL RETAILERS},
year = {}
}
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Abstract
Many small business retailers experience difficulty when they attempt to measure the short-term profitability of their businesses and some are uncertain whether the businesses have earned any profits at all in a given month. In the absence of other practical measurements, these retailers often rely on short-term cash flow as an informal profitability surrogate, which sometimes leads to inaccurate conclusions. This article proposes and demonstrates the calculation of a monthly break-even point, expressed in sales dollars, which can serve as a control standard for determining whether a profit was made in a particular month. The monthly break-even point also provides an estimate of the level of the profit (or loss). Calculation of the break-even point is simple, uses data readily available to small business operators, and has greater practical value for many retailers than the standard, one-product version of break-even analysis that is provided by most business texts. Are We Making Any Money or Not? Monthly Break-Even Analysis for Small Retailers
Keyphrases
monthly break-even analysis small retailer making money monthly break-even point sale dollar particular month practical measurement short-term profitability short-term cash flow monthly break-even analysis business text informal profitability surrogate one-product version break-even point small business operator practical value small retailer many retailer control standard many small business retailer break-even analysis
