(function(){ var fixed = fieldname1; var variable = fieldname2; var price = fieldname3; var units = fieldname4; var box = jQuery('#be-interpretation'); if(!box.length) return 0; var content = ''; /* * VALIDATION */ if(!price || price <= variable || !units || units <= 0){ content = '

' + '

⚠

' + '

' + 'Break-even calculation unavailable' + '

Your selling price must be greater than your variable cost per unit, and expected sales units must be greater than zero.

' + '

'; box.find('.be-interpretation-content').html(content); return 0; } /* * CALCULATIONS */ var contribution = price - variable; var contributionPercent = (contribution / price) * 100; var breakEvenUnits = Math.ceil(fixed / contribution); var breakEvenRevenue = breakEvenUnits * price; var profit = units * contribution - fixed; var marginSafety = ((units - breakEvenUnits) / units) * 100; /* * ROUNDING */ contribution = Math.round(contribution * 100) / 100; contributionPercent = Math.round(contributionPercent * 10) / 10; marginSafety = Math.round(marginSafety * 10) / 10; profit = Math.round(profit * 100) / 100; /* * STATUS */ var status = ''; var statusClass = ''; var statusIcon = ''; if(units > breakEvenUnits){ status = 'Profitable'; statusClass = 'be-status-profit'; statusIcon = '✓'; }else if(units == breakEvenUnits){ status = 'At Break-Even'; statusClass = 'be-status-even'; statusIcon = '='; }else{ status = 'Below Break-Even'; statusClass = 'be-status-loss'; statusIcon = '↓'; } /* * CONTRIBUTION MARGIN INTERPRETATION */ var contributionText = ''; if(contributionPercent >= 50){ contributionText = 'Your contribution margin is strong. A large portion of each sale is available to cover fixed costs and generate profit.'; }else if(contributionPercent >= 30){ contributionText = 'Your contribution margin is reasonably healthy, giving the business a useful amount from each sale to cover fixed costs and profit.'; }else if(contributionPercent >= 15){ contributionText = 'Your contribution margin is relatively thin. Changes in pricing or variable costs could have a noticeable impact on profitability.'; }else{ contributionText = 'Your contribution margin is very low. You may need to increase your selling price, reduce variable costs, or reconsider the product economics.'; } /* * MARGIN OF SAFETY INTERPRETATION */ var safetyText = ''; if(marginSafety >= 30){ safetyText = 'Your margin of safety is strong, meaning sales could decline substantially before the business reaches its break-even point.'; }else if(marginSafety >= 15){ safetyText = 'Your margin of safety is moderate. The business has some protection against lower sales, but a significant decline could affect profitability.'; }else if(marginSafety > 0){ safetyText = 'Your margin of safety is relatively small. The business is profitable, but it is vulnerable to a decline in sales.'; }else{ safetyText = 'Your current sales volume is below the break-even level, so the business is currently operating at a loss.'; } /* * MAIN INTERPRETATION */ if(units > breakEvenUnits){ var unitsAbove = units - breakEvenUnits; content = '

' + '

'+statusIcon+'

' + '

' + ''+status+'' + '

Your expected sales are above the break-even point.

' + '

' + 'Your business needs to sell approximately '+breakEvenUnits+' units ' + 'to cover all fixed and variable costs. Based on your expected sales of ' + ''+units+' units, you are approximately ' + ''+unitsAbove+' units above break-even.' + '

' + '

' + 'At this sales level, your estimated profit is approximately ' + ''+profit+'.' + '

' + '

' + 'Each additional unit sold after the break-even point contributes approximately ' + ''+contribution+' toward profit, assuming your costs and selling price remain unchanged.' + '

' + '

' + 'Break-Even' + ''+breakEvenUnits+' units' + '

' + '

' + 'Margin of Safety' + ''+marginSafety+'%' + '

' + '

' + 'Contribution Margin' + ''+contributionPercent+'%' + '

' + '

' + 'Business insight' + '

'+contributionText+' '+safetyText+'

' + '

'; }else if(units == breakEvenUnits){ content = '

' + '

'+statusIcon+'

' + '

' + ''+status+'' + '

Your expected sales are exactly at the break-even point.

' + '

' + 'At approximately '+breakEvenUnits+' units, ' + 'your total revenue covers your total costs.' + '

' + '

' + 'The business is not expected to make a profit or loss at this sales volume. ' + 'Every unit sold above this level should contribute approximately ' + ''+contribution+' toward profit, assuming costs remain unchanged.' + '

' + '

' + 'Business insight' + '

Your business has no margin of safety at the current sales forecast. Increasing sales or improving your contribution margin would create a safer position.

' + '

'; }else{ var unitsNeeded = breakEvenUnits - units; content = '

' + '

'+statusIcon+'

' + '

' + ''+status+'' + '

Your expected sales are below the break-even point.

' + '

' + 'Your business needs to sell approximately '+breakEvenUnits+' units ' + 'to cover its costs, but your expected sales are only ' + ''+units+' units.' + '

' + '

' + 'You therefore need approximately '+unitsNeeded+' additional units ' + 'to reach break-even.' + '

' + '

' + 'At the current sales forecast, your estimated loss is approximately ' + ''+Math.abs(profit)+'.' + '

' + '

' + 'Break-Even' + ''+breakEvenUnits+' units' + '

' + '

' + 'Units Needed' + ''+unitsNeeded+'' + '

' + '

' + 'Contribution Margin' + ''+contributionPercent+'%' + '

' + '

' + 'How to improve' + '

Consider increasing the selling price, reducing variable costs, increasing sales volume, or reducing fixed costs.

' + '

'; } box.find('.be-interpretation-content').html(content); return 0; })()