Tuesday, 27 December 2011

Break-Even Analysics

* selling price for a unit: p
* cost to produce a unit: c
* revenue by selling a unit: r=p-c
* fixed consts: f

* Break-Even Point: BEP=f/(p-c)=f/r <-- how many units of a product
                                        you'll need to sell to break
                                        even (i.e. no revenue - no loss).
                                        Any unit selling above BEP
                                        contributes to revenue.


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