Break Even - Event Calculator
Event or Promotions Breakeven Calculator Explained:
(a) What is this? This calculator indicates the breakeven point for an event or promotion.
(b) What does this tell me? It indicates what number is required to achieve (the breakeven point). It is up to the business determine if this is achievable.
(c) Why should I use it? To assist in determining the viability of an event or promotional campaign. It can identify the sales increase required to breakeven for the event or the promotion. Secondly to make sure the business will make money. The margin of safety records the profit or loss the event or promotion will generate.
(d) Caution: This measure does not tell you whether to undertake an event or promotion, it simply indicates what the anticipated profit or loss point will be. It allows you assess whether or not the required sales increase will be enough. Note that some promotions don't make money and are still deemed successful - such as raising awareness of the business etc. Whether you proceed with an event or promotion is a decision you make, this calculator doesn't make that decision for you. You use this calculator at your risk.