Method for Determining Minimum Prices and Sales Volumes, Taking into Account the Tax Burden

The article is devoted to the substantiation of the methodical approach to determining the minimum price and volume of sales on the basis of the tax burden. The object of research is the financial-economic activity of legal entities, and the subject of research is the calculation of critical prices and the amount of products, at which the net proceeds from the sale will cover all costs of the company. In his study, the author is based on the theory of the break-even point, tax regulations and accounting data. The analysis of costs that may occur in the company’s activities is performed; the specifics of cash flows and current tax rules are investigated. A formula for calculating the break-even point for the business subjected to a common system of taxation and business that are single tax payers. The system of indicators substantiated by the author allows the company to evaluate the feasibility of manufacturing specific products or services, and the opportunity to profit from their sale.