Funding and Debt Management

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Part2_FinancialBreak-EvenWorksheet.xls
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Fixed-Variable Base

FINANCE Breakeven-Leverage Worksheet
XYZ CORPORATION Fixed Variable Base
Retail Price 15 First Year
YEAR 0 1 2 3 4 5 Breakeven
Units Sold 200 220.00 242.00 266.20 292.82 44.55
Revenues 3,000.00 3,300.00 3,630.00 3,993.00 4,392.30 668.18
Variable Exp. 800.00 880.00 968.00 1,064.80 1,171.28 178.18
Fixed Exp. 400.00 400.00 400.00 400.00 400.00 400.00
Dep. 50.00 50.00 50.00 50.00 50.00 50.00
EBIT 1,750.00 1,970.00 2,212.00 2,478.20 2,771.02 40.00
Interest Exp. 40.00 40.00 40.00 40.00 40.00 40.00
Tax 427.50 482.50 543.00 609.55 682.76 0.00
Net Income 1,282.50 1,447.50 1,629.00 1,828.65 2,048.27 0.00
Add:
Depreciation 50.00 50.00 50.00 50.00 50.00
CASH FLOW (250.00) 1,332.50 1,497.50 1,679.00 1,878.65 2,098.27
DOL = 1.26
DFL = 1.02
DCL = 1.29

Fixed Lower-Variable Higher

FINANCE Breakeven-Leverage Worksheet
XYZ CORPORATION Fixed Lower/Variable Higher
Retail Price 15 First Year
YEAR 0 1 2 3 4 5 Breakeven
Units Sold 200 220.00 242.00 266.20 292.82 37.14
Revenues 3,000.00 3,300.00 3,630.00 3,993.00 4,392.30 557.14
Variable Exp. 900.00 990.00 1,089.00 1,197.90 1,317.69 167.14
Fixed Exp. 300.00 300.00 300.00 300.00 300.00 300.00
Dep. 50.00 50.00 50.00 50.00 50.00 50.00
EBIT 1,750.00 1,960.00 2,191.00 2,445.10 2,724.61 40.00
Interest Exp. 40.00 40.00 40.00 40.00 40.00 40.00
Tax 427.50 480.00 537.75 601.28 671.15 0.00
Net Income 1,282.50 1,440.00 1,613.25 1,803.83 2,013.46 0.00
Add:
Depreciation 50.00 50.00 50.00 50.00 50.00
CASH FLOW (250.00) 1,332.50 1,490.00 1,663.25 1,853.83 2,063.46
DOL = 1.20
DFL = 1.02
DCL = 1.23

Fixed Higher-Variable Lower

FINANCE Breakeven-Leverage Worksheet
XYZ CORPORATION Fixed Higher/Variable Lower
Retail Price 15 First Year
YEAR 0 1 2 3 4 5 Breakeven
Units Sold 200 220.00 242.00 266.20 292.82 51.30
Revenues 3,000.00 3,300.00 3,630.00 3,993.00 4,392.30 769.57
Variable Exp. 700.00 770.00 847.00 931.70 1,024.87 179.57
Fixed Exp. 500.00 500.00 500.00 500.00 500.00 500.00
Dep. 50.00 50.00 50.00 50.00 50.00 50.00
EBIT 1,750.00 1,980.00 2,233.00 2,511.30 2,817.43 40.00
Interest Exp. 40.00 40.00 40.00 40.00 40.00 40.00
Tax 427.50 485.00 548.25 617.83 694.36 - 0
Net Income 1,282.50 1,455.00 1,644.75 1,853.48 2,083.07 0.00
Add:
Depreciation 50.00 50.00 50.00 50.00 50.00
CASH FLOW (250.00) 1,332.50 1,505.00 1,694.75 1,903.48 2,133.07
DOL = 1.31
DFL = 1.02
DCL = 1.35