Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 63

Before you start selling a product, you need to know the fixed costs, the variable costs, and the sale price. See Chapter 2 for more on cost terms. You can use the cost and price information to determine how many units you need to sell to recover all your costs — your breakeven point. The formula is

Profit ($0) = sales – variable costs – fixed costs

Failing to get a grip on profit, loss, and breakeven point can be funny, at least on TV. Saturday Night Live did a skit years ago about “The Change Bank.” Its only business was to make change, and its tag line was “We can meet all of your change needs.” The owner was asked: “How do you make money just making change?” “Volume!” says the owner.

The joke in the Change Bank skit is that regardless of how much business you do, there’s no profit in making change for people.