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Break Even Analysis with JMP, possible?

saitcopuroglu

Community Trekker

Joined:

Sep 29, 2014

Dear All,

Is it possible to analyse the Break-Even point(s) in JMP?

I have a simple annual Revenue and Expenses data attached which is only based on months which happened this year.

I need to calculate and display the break even point in Currency and Date.

I guess first I need to fill the days to fit the end of month values. I could do by placing Date at X axis and Cumulative[REVENUE] or Cumulative[EXPENSES] at Y axis ( Fit Y by X) but I am unable to place both the REV and EXP to the same axis. I guess If I could pull out the curve equation as a formula I could do something with Profiler but I couldn't go so far...

Could someone show me the light please?

4 REPLIES
scwise

Staff

Joined:

Jul 7, 2014

saitcopuroglu,


A great way to do this in JMP is to use the Graph Builder to visualize the break even points.  Taking your current example data, you can put both Cumulative Expense and Revenue both on the Y axis and then put the Date on the X axis.  Then you can find the break even point at the intersection of the lines where Cumulative Expenses = Cumulative Revenue.  Using the cross-hair tool can help see the values for the break even and even right click into each axis and add a dashed line at the respective break even value and date.

10324_Screen Shot 2015-11-04 at 5.24.10 AM.png

Also for fun we put in a column for Total Profit (Just the difference between Cum Revenue and Cum Expense) and put this over into the second Y axis (right one) of the graph builder to introduce an additional area chart view into the graph.  The secret to get something over into the second y axis is to put two or more parameters into the first Y Axis (left one), and then right click and select the "move right" option for the one you want over on the right.  This view makes it even easier to see the break even point.

10343_Screen Shot 2015-11-04 at 5.39.39 AM.png

Attached an updated example data file with saved scripts and the newer column so you can see how we set up these graphs.

Hope this helps!

Scott

saitcopuroglu

Community Trekker

Joined:

Sep 29, 2014

Dear Scott,

Thank you very much for the reply.

Yes it helps as the main logic, but I would like to do it more precise and automated and would like to go much further.

Instead of manually looking for BE Point by CrossHair Tool, I am willing JMP to do it and display it for me.

I'm expected to do it everyday during the season (Resort Hotel Business) and once I can do it with this simple table which respresents the estimated budget revenue and expenses, later on the actual revenue and expenses come to play which I would like to compare with budget revenue and expenses. ​Also beside the BE point I would like to do the same for Total Profit Max point.

For all this I guess I need to first fill the blank rows (days) to fit the curve of Rev and Exp. I know I can estimate a polynomial equation and save predicted formula which will fill the rows for me but should I do it with Fit Y by X or Time Series or Fit Model or Profiler? The next step which I am really in dark is how will I make JMP to calculate and display those informations: Budget BE Point, Actual BE Point, Budget Total Profit Max Point, Actual Total Profit Max Point..etc..

Because the actual data will flow day by day the predicted Revenue and Expenses Formula Column data will vary..

Hope you can help further,

many thanks in advance.

brady_brady

Staff

Joined:

Jun 9, 2012

Hi saitcopuroglu, try running the script below with your table current. It will fit splines (which can be adjusted to your liking), save the predictions and find the break-even point. The break-even row will be subsetted and a message printed to the log as to the time.


You could then plot the predicted values vs. each other, etc.


Cheers,

Brady


Code deleted, as it was not pasting properly.

brady_brady

Staff

Joined:

Jun 9, 2012

Sait,

Please try running the attached script with your table as the current table. For some reason the text of the script became corrupt after pasting, so I am guessing you could not get the script to run properly. I tried a few times to paste the script into an edited version of my post, to no avail.

Hopefully by including it as an attachment, you will be able to run it.

Cheers,

Brady