Quick and Dirty Calculation of Break Even As a Result of Promotional Costs—by Eduardo R. Casas

Thanks to Ed Casas for guest posting today and covering a topic I know very little about! Thanks to Ed for developing a formula for finding it out.

BY EDUARDO R CASAS
Below is a simple way to calculate how many books one has to sell to recover the promotional costs ( or any additional fixed cost) of a marketing campaign.

Both in units and dollars

You need to know 4 things:

A. UNIT SALES PRICE
B. VARIABLE COTS PER UNIT
C. TOTAL FIXED COSTS
D. PROMOTION COSTS

The spread sheet is flexible so that every time you have any additional fixed costs or promotional costs just simply enter the amounts on the cell 1 FC for fixed costs, 2 FC for promotional costs , 3 FC automatically sums up all the costs , and below you can see the results.

For those who can use Excel, it’s rather simple , if you would like an Excel copy of the spreadsheet, please send an email address in the comments or comment with an email to my blog.

You can see given these factors that an additional 333 books need to be sold to cover this additional cost. Just plug in the cells motioned new costs and the spreadsheet gives you the new results.

Born in Havana Cuba, Ed now lives in Coral Springs Florida. His experience as an auditor has spanned over 20 years. He has traveled to many international locations and has dealt with all kinds of financial situations, providing a myriad of experiences, from which Ed has drawn on for inspiration for his stories. You can find Ed on his blog, on Facebook, and at his profile on Crimespace.