Everyday Plumbing & Gas

Monthly Profit & Loss Statement

INCOME
Example to be used over the
Service & Maintenance $37,600
Project Work $23,900
next few pages.
Other Income $2,450
TOTAL INCOME: $63,950

Less: COST OF GOODS SOLD/DIRECT COSTS

Materials $19,700
Contract Labour $4,400
Rubbish Removal $2,500
Wages - Apprentice $3,000
Wages - Tradesman $4,500
Wages – Owner (30 hours on tools) $4,500
TOTAL COST OF GOODS SOLD $38,600

GROSS PROFIT $25,350 40%

Less: EXPENSES:
Accounting & Bookkeeping Fees $500
Marketing & Advertising $1,300
Computer/IT/Software Expenses $350
Electricity & Gas $650
Insurances $1,400
Merchant Fees $340
Motor Vehicle - Fuel $400
Motor vehicle Leases $1,200
Motor Vehicle - Maintenance $950
Postage $65
Printing & Stationery $450
Rent $1,800
Repairs & Maintenance $240
Staff Training & Development $1,100
Subscriptions & Memberships $300
Superannuation $1,473
Telephone $360
Tool Replacements/Equipment $1,450
Uniforms $350
Wages - Admin $2,000
Wages – Owner (10 hours) $1,500
Workcover $1,200
TOTAL OPERATING EXPENSES: $19,378

NET PROFIT BEFORE INTEREST & TAX $5,973 9%

Breakeven point
Many people in business are not aware of the vital importance of the breakeven point and how
they should calculate it.

The breakeven point is that point at which the business covers its costs and thus breaks even. It
tells you exactly how much you must sell at the present level of costs to avoid making a loss and
it can be used to regularly check the progress of your business by comparing sales achieved with
the breakeven point. To accurately calculate your breakeven point, the fixed and variable costs
on which you base the calculation must be correct.

At the breakeven point you have covered all of your costs but you have not made a profit.

The breakeven formula is fixed costs divided by gross profit margin, expressed as a percentage.

The breakeven formula is:

Breakeven point = Fixed Operating Expenses $

Gross Profit Margin

To find this on your Profit and Loss Statement for each month calculate the following:
1) Get the total of your operating expenses for the month and put this at the top of your
equation
2) Calculate your gross profit margin and put this at the bottom of your equation
Gross profit margin = gross profit for the month (income less cost of goods sold) divided by total
income for the month
3) Divide fixed operating expenses by gross profit margin to calculate your breakeven point in
dollars ($).
Breakeven point is most often used as a profit goal by start-up or fledgling businesses that
expect to operate at a loss until such time as they become established. The very concrete goal
of reaching a break-even point can be a great incentive for new business owners, as it is the
exact point at which they start making a profit.
Everyday Plumbing & Gas Break Even point per month…

Breakeven point = Fixed Operating Expenses ($)

Gross Profit Margin (%)

Breakeven point = $19, 378

40%

Which = $48,445

Calculate your Break Even point per month.

From the previous page you will see:

Breakeven point = Fixed Operating Expenses ($)

Gross Profit Margin (%)

Breakeven point = _________________________________

Which = _________________________________

What does this equate to in # jobs/appointments/sales per month? (Based on your average job
value)

__________________________________________________________________________

How many sales per month (target) are required to reach your net profit target?

__________________________________________________________________________
What is your current and projected?
Please ensure that you take this page with you to your projections session to complete.

Average Job Value

Current

Gross Revenue
Average Dollar Sale =
Projected
Total # of Sales / Jobs

Conversion Rate (%)

Current
# Sales / Jobs Won
Conversion Rate = x 100
Projected
# Enquiries / Quotes

Gross Profit (%)

Current
Total Revenue – Cost of Goods Sold (COGS)
Gross Profit = x 100
Total Revenue
Projected

Net Profit (%)

Current
Gross Profit – All other operating expenses
Net Profit = x 100
Total Revenue Projected