Calculations Used in the Breakeven Assessment
LiveIQ uses the following calculations in the Breakeven Assessment.
Value | Calculation Used |
---|---|
Weekly Fixed Cost (including "Monthly Rent") | Charges / 4.3 |
Hourly Fixed Cost | Weekly fixed cost / hours open per week |
Yearly amounts | Total / 52 |
Total Fixed Costs | (Total Monthly Rent) + (Labor & Taxes) + (Miscellaneous Monthly Amount) + (Monthly repairs and maintenance) |
Gross Margin Ratio | 1 – (Food cost % + Royalty (see to 0.08) + Advertising Fee (set to 0.045)) |
Hourly Breakeven | (Total Fixed Costs / Gross Margin Ratio) / Hours open per week |
15-Minute Breakeven | Hourly Breakeven / 4 |