Sales are up, so why is nothing left?
The thinner the margin, the more exactly you need to know break-even.
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Estimated operating profit
2,500,000KRW
Operating margin 5.0% · Gross margin 26.0%
Purchases 37,000,000Fixed costs 10,500,000Profit 2,500,000
Break-even revenue
40,384,615
Sell this much to break even
Daily sales needed
1,346,154
Based on 30 days
Compared with the industry average
| Your store | Industry average | ||
|---|---|---|---|
| Cost ratio | 74.0% | 72.0% | 1,000,000 behind |
| Labor ratio | 11.0% | 10.0% | 500,000 behind |
| Operating margin | 5.0% | 6.0% | 500,000 behind |
Where to cut
Bringing the cost ratio down to the industry average keeps 1,000,000 KRW more each month.
Industry averages are commonly used reference figures for retail and food service.
Show how this is calculated
Operating profit = sales − purchases (cost of goods) − fixed costs (rent + payroll + other) · Break-even revenue = fixed costs ÷ gross margin
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