Office Cubicle Installation Break-Even Analysis: $95K Monthly Revenue

Fixed costs $56.9K/mo Year 1 base

Contribution margin 58% After variable costs

Break-even revenue $97.7K/mo Monthly target

Break-even timing Month 8 Forecast break point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where an office cubicle installation service breaks even.

Lean Base Full

Monthly revenue More monthly revenue gives you more dollars to cover overhead. $ Low sales High sales Variable expenses Use direct labor, supplies, fuel, and sales fees here. $ Lower cost Higher cost

Money available to cover fixed costs $115,000 $160,000 revenue - $45,000 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin must cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which cubicle installation expenses are fixed, and which move with sales?

Cost classification

Month 8 break-even is only useful if each expense sits in the right bucket. Fixed rent and payroll set the revenue floor; supplies, subcontract labor, fuel, and commissions reduce contribution on each job.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Rent	Fixed	Include the full $6,500 monthly amount in overhead before setting the revenue target.	Spreading rent across jobs and letting it fall in slow weeks.
General Liability and Workers Comp Insurance	Fixed	Carry $2,200 per month as required overhead for the full planning range.	Linking insurance to job count when the policy bill keeps running.
CRM and Project Management Software	Fixed	Use the $450 monthly subscription as fixed overhead in break-even math.	Ignoring small software bills because they look minor alone.
Project Specific Supplies and Fasteners	Variable	Deduct 8.5% of first-year revenue before calculating contribution margin.	Booking supplies as a flat monthly budget instead of job-linked spend.
Subcontracted Specialized Tech Labor	Variable	Deduct 12.0% of first-year revenue as work is sold and delivered.	Treating subcontract labor like salaried crew overhead.
Sales Commissions and Referral Fees	Variable	Deduct 4.0% of revenue from each sold project before overhead recovery.	Counting gross sales as contribution before commissions clear.
Fleet Fuel and Mobile Maintenance	Semi-variable	Use the 5.0% first-year usage charge below gross revenue, and monitor the fleet base separately.	Putting every vehicle dollar in fixed overhead.
Lead Installation Technician Payroll	Semi-fixed	Model $10,333 per month in first-year crew capacity, then step up as FTE count rises.	Treating idle technician payroll as variable when salary continues during slow weeks.

How does break-even change across lean, base, and full cubicle install setups?

Scenario table

Break-even moves up fast as you add crew, fleet, and warehouse costs. The rule is simple: billed crew hours have to grow faster than salaried payroll and overhead, or the cushion disappears.

Planning cases only; real break-even shifts with job mix, travel, and crew utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean owner-led launch	$861k	$254k	$607k	70.5%	$0	Best for a tight launch, but travel or idle time can erase the margin fast.
Base mixed-service plan	$954k	$281k	$673k	70.5%	$0	About 30 average jobs or 976 billed hours keeps it near break-even.
Full Year 2 scale plan	$1,181k	$334k	$847k	71.7%	$0	More cushion, but only if billed hours rise faster than payroll and overhead.

What breaks this office cubicle installation break-even plan?

Stress test

The plan starts with only about a $59k cushion, so it does not have much room for slower bookings. Higher fixed overhead, more subcontracting, or crews waiting on work can push break-even up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; fixed load stays near $673k and contribution margin stays at 70.5%.	$954k	$59k cushion	Thin cushion; idle crews can erase it fast.
Revenue shortfall	Revenue lands 10% below break-even while costs hold.	$954k	$95k gap	A booking miss this size wipes out the cushion.
Fixed-cost pressure	Fixed load rises 10% from higher rent, fleet, or salaried labor.	$1,050k	$37k gap	Overhead pushes the floor above the current plan.
Margin pressure	Variable expenses rise from 29.5% to 34.5% of revenue.	$1,027k	$14k gap	More travel or subcontracting eats contribution fast.
Combined pressure	Fixed load rises 10% and variable expenses rise to 34.5%.	$1,130k	$117k gap	Slow bookings and higher overhead break the plan.

What should you verify before you add technicians or buy more field equipment?

Founder checklist

Don’t add crew or equipment until the booking pipeline can support about $95K a month and the launch cash is covered. The model only turns positive in Month 8, so the real test is whether quotes, staffing, and runway can carry you to that point.

1Booking pipeline$95K/mo

Verify signed work can fill enough billable hours to reach about $95K in monthly revenue before you hire more installers, or fixed labor will outrun demand.

2Gross pricing29.5% var.

Verify quotes on installation, reconfiguration, and decommissioning cover billable hours plus travel, supplies, and subcontracted tech labor, so Year 1 variable costs stay near 29.5% of revenue.

3Overhead load$14.1K/mo

Verify the fixed base for rent, insurance, fleet, software, renewals, and utilities stays at $14.1K a month, because that is the load the jobs must cover first.

4Crew ramp9 FTE

Verify the Year 1 staffing plan of 9 full-time equivalents can handle the work without stretching quality, since capacity has to rise with booked jobs.

5Cash runway$689K

Verify you can hold at least $689K through Month 7, because breakeven arrives in Month 8 and early losses are already in the model.

6Launch spend$84.5K

Verify the $84.5K setup for tooling, vehicle outfitting, moving gear, racking, workstations, safety gear, layout tools, and communications is funded before you expand the fleet.