Punto de Equilibrio Financiero

The Financial Equilibrium Point consists of determining the minimum number of units that must be sold, for each product or service, to obtain profits.

Upon reaching the breakeven point, the fixed costs are covered, so that from this point of sale the profits begin to be received.
Knowing the Balance Point is vital for any organization, it allows among other things:

- Sales planning and strategy.
- Goal setting.
- Budgeting.
- Production planning.
- Management of purchases and storage.
- Investigation and development.
- Costs control.
- Design and control of KPI's.

In order to calculate the Balance Point, it is required to know:

- Quantity of products: It is the quantity of products or services that are marketed.
- Fixed costs: These are all those costs that are incurred regardless of the production volume. In other words, they must be canceled, even if nothing happens.
- Unit costs: It is the production cost per unit. That is, the cost incurred to produce 1 unit of a product or service.
- Proportion (%): When working with more than 1 product, it is necessary to assign a percentage weight to each of the products. There are several ways to do it, it is customary to estimate it according to the sales of the previous period, projected sales, production times, space used in inventory, or, in general, the consumption of a particular resource. The sum of the percentages distributed to each product must be 100.



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