Math Break Even Point

Today, we'll be focusing on the math economists use, specifically microeconomcis. This math will help illustrate and prove the concept of Universal Salvation through faith alone in Jesus Christ. The topic today will feature a Cost Volume Project (CVP) graph.

I've formatted theses posts so that they are all contained cases, meaning all the information I've used to explain them are within this individual post. They are all allgorical, meaning I'm using these mathematical concepts as a vessel in which I explain the topic.

https://www.readyratios.com/upload/iblock/25e/bep.jpg

Source of Graph Image: https://www.readyratios.com/reference/analysis/break_even_point.html

Jesus Christ dying for all of our sins is like the Break Even Point (BEP), both in Units form and in Sales Form. His blood covers the sins of the whole world. For someone to be saved, it's up to them to believe in Him as their saviour through faith alone. But Universal Salvation guarantees that eventually, everyone will choose to believe in Him.

Break Even Point in Units Sold

= Fixed Expenses / Unit Contribution Margin

= FC / CM PU

Break Even Point in Total Sales Dollars

= Fixed Expenses / Contribution Margin Ratio

= FC / CM Ratio

Our Contribution Margin Ratio can be further broken down into the following...

CM Ratio = CM / Sales

= 1 - VC Ratio

- 1 - (Variable Expenses / Net Sales)

Example: Total Expenses and Total Sales both intersect at a certain point on a graph. The coordinate they meet on the X and Y plaine (x,y) is when sales "Break Even" with Expenses. Our Revenues = 0. Our Expenses = 0.

Being saved means being given a blank slate. Sins are expenses, they are a wage we pay, a cost.

Fixed Expenses = We are all physically born with sin at birth.

Variable Expenses = During our life, we choose to commit more sins.

The blood of Christ Jesus washes away all our sins, leaving it at 0. The sins we are born with are washed away. The sins we choose to commit, in the past, present and future, are washed away. All of our sins are washed away in the sight of the Lord when we believe in Jesus Christ as our saviour through faith alone.

It is impossible for the good works of man to appease the Lord. In accounting terms, without Jesus Christ, you'll always be in the red, operating at a loss. Only when you believe in faith alone in Christ can you begin operating at a profit. Break-Even Point is useful because business can create internal managerial reports to calculate Incremental Revenue and Incremental Cost. For instance, with this adjusted version of the formula above:

Units Sold to Attain Target Profit = (Fixed Expenses + Target Operating Profit) / Unit Contribution Margin.

Dollar Sales to Attain Target Profit = (Fixed Expenses + Target Operating Profit) / Contribution Margin Ratio.

And then even further with the Margin of Safety, which is the excess sales volume we have budgeted or that actually exist over our Break Even amount.

Margin of of Safety = Total Sales - Break Even Sales

Margin of Safety Percentage = Margin of Safety in $ / Total Budgeted (or Actual Sales)

It is out of God's grace that He chose to save out. He desires to have His plan of Universal Salvation fulfilled. In both the law and in accounting, publicly traded corporations are viewed as their own entities. That is, they operate under the principle of limited liability. The only loss investors get is what they put in. God Himself is still perfect, has been and always will be, regardless of our sin. But, God created us to serve a purpose. He invested His time, thousands of years of human history and His resources, the entire Earth and the dust we were formed from, to make us.

He will save everyone because, no business owner desires to see their businesses fail. The reason entrepreneurs make their own start ups is so they succeed. With sin, we are morally bankrupt, but Jesus Christ defaults all of our loans, free of charge, completely when we believe. God will save us all from the bankruptcy of sin, He's just waiting for our permission, our faith, our trust in Him to do so. Amen.