You will not Everything to the right and above is profit. It turns out that at this very point, profit will be zero. How the break-even point is calculat and us in practice At the beginning of the article, we mention in general terms what the breakeven point is for […]
The horizontal The formula for the calculation will help you understand how much you ne to sell in order to cover all variable and fix costs and make a profit. To calculate the break-even point in monetary terms, you ne to: As before, first calculate the fix costs. Then calculate […]
The break-even point can be calculat in different ways. Everything will depend on the goals, as well as the data you know. In addition to the above, to calculate : production volume in natural units: in pieces, kilograms, liters; Variable cost per unit: all variable costs or the quantity of […]
It is necessary to set a correct and objective price for the product in order to: on the one hand, you had the opportunity to realize the maximum possible sales volume, that is, not to overcharge; on the other hand, it would be possible to get a good margin from […]
Therefore, it is more profitable for the entrepreneur to produce more belts than bags. In this example, we did not calculate the breakeven point directly. However, we operat with its most important elements – marginality, variable costs per unit of production, revenue. This version of the “cost-volume-profit” method is also […]
