Equations connecting the BEP with net sales and returns/profits: Commonly to macro/micro

Macro net sales are the sum of national disposable net income (Y=NDI) and external expenses by country.  Micro net sales are the sum of value-added (VA) and external expenses or non-value added (non-VA) by enterprise in a country.  This paper connects macro net sales with micro net sales, endogenously based on macro NDI and commonly to macro and micro.  The break-even point (BEP) by enterprise is integrated with a national system of accounts (1993, 2010; SNA).  Systematically and commonly, a new BEP equation is composed of three endogenous specified parameters: life-time number of employees; number of total employees; the level of BEP; and external non-value added net sales.  The BEP equation is formulated so as to avoid textbook’s identity of BEP=1.0000 in corporate accounting, where profits=0, and leads to an integrated structure of the BEP and returns or profits.  Key determinants of the level of BEP to net sales are wages and external expenses.  As a result, countries and enterprises each control the level of BEP, by adjusting pertinent policies for wages and external expenses, ever consistently with the SNA, where statistics data are always within a certain range of endogenous data and, consistent relationship prevails among macro and micro economies.  Conclusively, from a new BEP equation’s viewpoint, we will get useful method for decision-making economic policies.  Most important factor in an economy is macro consumption.  The current most difficult problem in economic polices is how to increase the wage rate so as to strengthen economic policies.  This paper presents a method to increase the wage rate, together with external expenses, although external expenses, macro and micro, have been neglected hitherto.  Furthermore, this method is actually reinforced by full evidences obtained by the KEWT database for 86 countries, 1990-2012.