Breakeven Calculations
31 Jul 2010 Leave a Comment
in Surviving the Recession Tags: breakeven calculation, Contribution margin, profit margins, variable costs
Each individual product sale can be thought of as a contribution to to the task of making an overall profit for the business, assuming that the cost of producing (or buying) the product is less than its selling price. But merely producing a product (for example at a cost of $5. and selling it for $10 does not ensure a profit for the business. Why is this?
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