Break Even Analysis

Break Even Analysis

To find out if at which point when the meeting revenue will cover meeting expenses, you can use a break even analysis.

Fixed Expenses — costs that do not vary bases on the number of attendees. (i.e. room rental fees, speaker fees, entertainers, and photographers)

Variable Costs Per Unit — are charges that are levied base on the number of people attending or per person. (i.e. plated meals, hotel rooms, tickets to events)

If you know the total amount of fixed expenses, the price of admission, and the variable costs per unit (or person), then you can find the minimum number of attendees that are needed to cover your expenses.

Break Even Units: look for the number of attendees needed to break even.

Total Fixed Expenses

$

Price of Admission

$

Variable Cost per Unit

$

Number of Units needs to break even =

If you know the total amount of fixed expenses, the number of attendees expected, and the variable costs per unit (or person), then you can find the minimum price of admission to charge to cover your expenses.

Break Even Price: finds the registration price need to be charged in order to break even.

Total Fixed Expenses

$

Variable Cost per Unit

$

Number of Attendees

Admission Price to charge in order to break even = $