Hi Anonymous,
I think this would be easier to answer if you provided the example you were stuck on?
Generally breakeven is just the time when:
revenue = cost
To break this down to what works in most cases:
price*annual volume sold*number of years = initial investment + fixed costs*number of years + variable cost*annual volume sold*number of years
Let me know if this doesn't apply to your example! :)
Kay
Hi Anonymous,
I think this would be easier to answer if you provided the example you were stuck on?
Generally breakeven is just the time when:
revenue = cost
To break this down to what works in most cases:
price*annual volume sold*number of years = initial investment + fixed costs*number of years + variable cost*annual volume sold*number of years
Let me know if this doesn't apply to your example! :)
Kay