Template indicator or additional profitability control point ?? !! The break-even point is when your marginal profit equals your fixed costs. At this point, the company’s profit is zero. The break-even point is measured in terms of physical or monetary value.
Especially at the time of development, construction or planning of an enterprise, the calculation of the zero point makes it possible to determine:
📍 Is it worth investing money in the project, given that it will pay off only with such a volume of sales
📍 Identify possible problems at the enterprise associated with a change in the break-even point over time
📍 Calculate changes in sales volume and product price, that is, how much should the sales volume of production change if the price of the product changes and vice versa
Accordingly, having calculated this indicator, we can monitor the profitability of the enterprise daily
For example, by breaking down the zero point by days, you can get additional control tools:
📍 Daily revenue of zero
📍 Revenue of zero per waiter
It is important to monitor this indicator daily. Set the restaurant manager the task of daily monitoring of these indicators !! Keep your finger on the pulse and react promptly in case of failure to meet these indicators. This is much easier to do with daily statistics than receiving a report at the end of the month with numbers that are no longer correctable.
