Question

I need help with the Break Even formula?

I´m a business major at the University of Guadalajara and at the moment I need to elaborate the Break Even point for my simulated company which provided intagible services similar to a law firm. However, how do you find the Break Even point (punto de equilibrio) for a company that only provides services and does not produce or sell tangible products?

1 year ago - 1 answers

Best Answer

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You must cover salaries and administrative costs/expenses like rent, utilities.
Most all expenses are fixed in a service company
Run your model with all expenses, determine hourly rate for billing attorneys, and solve for revenue needed to cover expenses

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1 year ago