3 articles tagged "fixed costs"
Before you can answer 'is this business viable?' you need to know one number: how many units or how much revenue you need to break even. This guide covers the full concept from first principles, with worked examples.
The break-even formula only has three inputs, but getting the classification of fixed versus variable costs wrong is the single most common reason the resulting number is unreliable. Here's how to get every input right.
A break-even calculation that looks reassuring on paper can hide errors that only surface months later as unexplained cash flow trouble. Here are six specific mistakes that undermine break-even analysis, and how to fix each.