break-even analysis

Discussion in 'Ask An Owner Operator' started by username1, Jul 20, 2011.

  1. Jul 20, 2011 #1
    username1

    username1 Bobtail Member

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    Jul 20, 2011
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    I am charging 90/hr for 8 hours/day 7 days a week. what do i need to put in the business plan for the break-even analyisis? Below is an example. Do I need to include the average per mile if i am charging by the hour per load? If so what are the current figures for below. Can I just say the profit and subtract the expenses? Also what are the current trends: the Top owner/operator and the Low owner/operator? How do I state it in the Trends since I am paying by hour not by mile? Do I have to include the fuel surcharge, the tarp fees, and the extra stop fee? How do I find the past trends for the top paid owner/operator and the average owner/operator? Thanks.



    The break-even point per month is projected to be at approximitly $6,000, or approximitly 5,220 miles at an averaged pay rate of $1.15 per mile.

    The break-even point per month is projected to be at approximately


    Break-even Analysis:
    Monthly Units Break-even 5,220 miles
    Monthly Revenue Break-even $6,000
    Assumptions:
    Average Per-Mile Revenue $1.299 currently with tractor/trailer combo selected
    Average Per-Mile Variable Cost $.70
    Average Per-Mile Profit (EST.) $.59
    Estimated Monthly Fixed Cost $7500.00
     
    Last edited: Jul 20, 2011
    username1, Jul 20, 2011
    username1, Jul 20, 2011
    #1
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  3. Jul 20, 2011 #2
    BigBadBill

    BigBadBill Bullishly Optimistic

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    In anything, complication is your enemy. Since you business is hourly I would figure how many miles you drive in an hour - say 45 miles. Then figure out your per mile cost - fuel, maintenance fund, etc. That times 45 miles gives you your hourly "variable" cost. Subtract that from hourly rate. Then divide that number by your fixed costs and that will tell you how many hours till break-even.
    You could get more complicated but I don't see added complication providing much value but can see it providing a larger margin of error.
     
    BigBadBill, Jul 20, 2011
    BigBadBill, Jul 20, 2011
    #2
  4. Jul 21, 2011 #3
    username1

    username1 Bobtail Member

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    Jul 20, 2011
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    Is it required to include that? It's confusing :S I just put my assets and expenses then the profit.
     
    username1, Jul 21, 2011
    username1, Jul 21, 2011
    #3
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