DRAFT | January 2018 Schools as Nutrition Hubs | Operational Plan Workbook: Break Even Analysis 1
Break Even Analysis
A break-even calculator is an excellent tool to use when deciding if a new program is sustainable. For
those of you familiar with your revenue projection, fixed costs, and variable costs, use this calculator
to do a quick calculation to determine if your program will break even or to identify areas where you
may need to make adjustments to start a financially solvent program. For those of you who need help
thinking through your daily revenue and fixed and variable costs, fill out Section 6 of the Operational
Plan Workbook and then populate this table.
Item Daily Revenue Daily Fixed Costs Daily Variable Costs
Projected Daily Revenue $646
Food Costs $226
Transportation $0
Supplies $130
Core Labor Costs $200
Administrative Labor/Overhead Costs $20
Benefits $58
TOTALS $408 $226
This example was a calculation done
by a new director looking to pilot the
afterschool meal program in one of her
schools. After speaking with the principal
and the afterschool program director, she
anticipated the program would serve 200
additional meals and the total fixed costs
would be $408. You will note that the
program was in the same school as where the
preparation took place so there is no charge
for transportation. Additionally, the School
Nutrition Director felt that the current staff
could produce the additional meals and that
she would not need any additional labor
hours. However, for her calculation, she still
included the core labor hours for the number
of meals that the staff would produce by
using her average Meals Per Labor Hour in
the pilot school. The total variable costs were
$226, which was the average daily cost of her
proposed 3-week cycle menu that included
Break Even Formula
Break Even Point = Fixed Costs
1 – (Variable Cost ÷ Revenue)
BE = $408
1 – ($226 ÷ $646)
BE = $408
1 – (.35)
BE = $408
.65
BE = $627
$646 > $627
