Total Revenue =

Gross Profit =

Profit Margin =

Cost =

Breakeven =

Calculates your Gross Profit Margin (GPM). You may use your P&L to track your GPM but you can use this to make projections, track jobs, time periods, etc. Also calculates the breakeven point of revenue based on cost and GPM.

The gross profit is the total revenue subtracted by the cost of generating that revenue. In other words, gross profit is sales minus cost of goods sold. It tells you how much money a business would have made if it didnt pay any other expenses such as salary, income taxes, office supplies, electricity, water, rent, etc.

-Total Revenue: Total revenue amount for the period of time being tested. (annual, monthly, by job etc).

-Gross Profit: Total dollar amount earned as profit.

-Profit Margin: Gross profit margin, the percent of revenue as gross profit.

-Cost: Total Cost, in dollars, of the new venture.

-Breakeven: Amount of revenue the new venture must generate in order to breakeven.

Calculate the Gross Profit Margin for a company that generated $978,450 and claimed a gross profit of $215,259. The company is considering adding another service truck which will cost $82,000 annually to maintain with employee, tools etc. What amount of money must be generated to breakeven for this venture?

-Total Revenue: $978,450.00

-Gross Profit: $215,259.00

-Profit Margin: 22.00%

New Venture

-Cost: $82,000.00

The company must generate an additional $372,727.27 to breakeven when adding this service truck.

Total Revenue

Gross Profit

Profit Margin

Cost

Breakeven

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GPM