| View previous topic :: View next topic |
| Author |
Message |
daynabo
Joined: 06 Aug 2008
Posts: 1
|
| Posted: Wed Aug 06, 2008 9:21 pm Post subject: Is there a formula to see if a business returns profits? |
|
|
Aloha
I have a friend who owns a security business. He obtains a contract that pays his security service $16 an hour. He then pays his guards only $10 an hour. Is there a formula we can use to run the business's figures through with all of the over head expenses and see if he breaks even or make any profits.
Mahalo for all your suggestions and answers |
|
| Back to top |
|
stasia2003
Joined: 25 Feb 2008
Posts: 199
Location: FL
|
| Posted: Thu Aug 07, 2008 5:38 am Post subject: Re: Is there a formula to see if a business returns profits? |
|
|
daynabo wrote: Aloha
I have a friend who owns a security business. He obtains a contract that pays his security service $16 an hour. He then pays his guards only $10 an hour. Is there a formula we can use to run the business's figures through with all of the over head expenses and see if he breaks even or make any profits.
Mahalo for all your suggestions and answers
Well, generally the best way to figure out your finances is to have an accounting system in place using some kind of software. When calculating profit, you need to take into consideration all revenues, expenses, and any other transactions that take place in the business. Your income statement is what tells you whether you made a profit or not. |
|
| Back to top |
|
Ahshucks
Joined: 22 May 2008
Posts: 50
|
| Posted: Tue Aug 26, 2008 11:41 am Post subject: |
|
|
(Break Even = Fixed Cost / (Unit Price - Variable Unit Cost))
http://connection.cwru.edu/mbac424/breakeven/BreakEven.html |
|
| Back to top |
|
| |
