BSM 200 Study Guide - Final Guide: Variable Cost, Ahoy Rotterdam, Contribution Margin
11 Apr 2015
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Selling price perunit ( $) variable cost per unit ($) Breakeven revenue( $)=breakeven volume ( ) selling price per unit ($) Breakeven analysis: about earning enough money so you don"t incur a loss, about balancing costs with revenues. Fixed costs remain the same: variable costs as #units . Together, they make total costs revenue should cover. Why do we breakeven: don"t want to go into debt. Strategies if can"t make enough units: sell more units by accessing more markets, raise price/unit have to consider market and competitors, get more efficient by lowering costs. E. g. fixed costs fewer full time employees, rent. 1: categorize into operating expenditures and capital investments. Fixed costs (operating: variable costs per unit, revenue per unit. Time of profitability: attractiveness of a market, market segment, or investment. Jane graham, the owner of jewelry works, wants to know how many necklaces she must sell in order to cover her fixed costs at a given price.
