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See we are manufacturing Snacks foods - daily we produce950 cartons per day with11 production staffs,3 administration staffs,4 Salesman,3 truck Drivers.Please let me know what all heads to calculate Break-even and Return on Investments.
The break-even point in sales dollars can be calculated by dividing a company's fixed expenses by the company's contribution margin ratio.
ROI = (Gains – Cost)/Cost
For a small business ... just add all the cost and divide it by number of cartons. you will have a minimum price to sell each carton. At this price if you sell950 cartons, you will get break even. Another approach is to divide total cost with per unit price. This will give you No of cartons you need to sell to break even. for ROI Take profit and divide it with total investment made and multiply with hundred.
