To calculate the breakeven point
, we first need to calculate the weighted average contribution margin, which is the contribution margin for each type of unit we sell times that unit's percentage of total unit sales.
Then, we explore existing stopping conditions and introduce a novel stopping condition based upon calculating a breakeven point
In our example where the contribution margin ratio was 40 percent, fixed expenses equaled $30,000, then the breakeven point
in revenue equaled $30,000/0.
Important questions like this can be answered using the breakeven point
(BEP), which is really a single year's cash flow model.
If the homeowner plans to stay in the home longer than the breakeven point
, refinancing benefits the homeowner.
A lower breakeven point
opens up new opportunities with marginal lists and creative approaches that might otherwise be discarded, he notes.
Nanometrics Incorporated (Nasdaq:NANO), a leading supplier of advanced metrology equipment to the semiconductor industry, today announced that the company will close its Milpitas machine shop and plating facility as part of the company's mission to reverse its vertical integration and lower its breakeven point
5 billion bailout package, PSM's production has significantly increased and till April 2015 it will cross the breakeven point
Economic Analysis Reveals - Breakeven Point
within 9 Months
A senior official of SriLankan Airlines expects the delivery of 10 new planes from 2014 to help the carrier move towards a breakeven point
Any automobile company XYZ including JLR will have to reduce its breakeven point
to be competitive and to survive and to not get buffeted by these kind of downturns which keep happening in the auto industry.
The company is presently working on a new viability plan which includes a breakeven point
of 10 million United States sales, which will attract the bondholders to trade in their debts for a stake in the new GM.