Break even point and return on investment

Tags:

Economics • Economics

Eps 858: Break even point and return on investment

The too lazy to register an account podcast

The break-even point in dollars of revenues can be calculated by dividing a company's total fixed expenses by its contribution margin ratio .
The payback period focuses on the pertinent cash flows of multiple accounting years instead of the net income of a single accounting period.
The payback period is considered to be flawed because it ignores 1) the cash flows occurring after the payback period, and 2) the time value of money .

Seed data: Link 1, Link 3, Link 5, Link 6, Link 7
Host image: StyleGAN neural net
Content creation: GPT-3.5,

Host

Michele Franklin

Michele Franklin

Podcast Content
The breakeven point in dollars of revenues can be calculated by dividing a company's total fixed expenses by its contribution margin ratio.The payback period focuses on the pertinent cash flows of multiple accounting years instead of the net income of a single accounting period.The payback period is considered to be flawed because it ignores 1 the cash flows occurring after the payback period, and 2 the time value of money.When calculating these payments for each year or even if they are not based upon any particular financial situation, you might also want consider that using estimates from various sources would produce an accurate estimate. In short Using this calculation we have shown how different payment cycles could potentially change over several periods due both budgetary constraints and economic pressures at times when paying back more than just interest rates or other government spending measures should reflect their current fiscal position as well.1 The following analysis shows what happens during payrolls versus actual GDP growth rather then changes around inflation23.
deleted 2 points 3 points 4 pointsUse of the site constitutes acceptance of our User Agreement and Privacy Policy.REDDIT and the ALIEN Logo are registered trademarks of reddit inc. The following is a statement from Reddit, which stated
It does not make sense to find the breakeven point using a company's payback period.The breakeven point of a company can be defined as the accounting period that generates enough revenue to cover all of a company's expenses for that accounting period.It would not make sense to use payback period to find a company's breakeven point, since both measure separate things.You might think it is easier if you had an account with your own private email address and used only one email server. However I am aware this could lead some people into thinking about ways to circumvent these laws in order allow them more flexibility than they are currently able. See also
The breakeven point is calculated by dividing the total fixed costs of production by the price of a product per individual unit less the variable costs of production.The calculation for a breakeven point in sales dollars happens by dividing the total fixed costs by the contribution margin ratio.The contribution margin ratio is the contribution margin per unit divided by the sale price.A typical number would be " Symbol,
Vendor recruitment of solution providers typically takes two formsprimarily, recruitment to join a partner program for the first time second, recruitment of an existing solution provider already in the programto adopt a new product family expected to be, or that was recently, launched.We have seen solution providers savvy enough to extend investment and breakeven goals to ensure they could recoup the previous months' investments and move on to sustainable profitability.Easier access to capital or the ability to let profits from a main line of business subsidize investment in the newer technology, even when longer than 12 months, explains how and why some solution providers, very few, can sustain investments beyond 12 months.Its important to understand this strategy because it allows us all to grow. It is not only possible but also economically feasible if we are able openly invested as well." The CEO says "As you will see with any other approach there has been no shortage here at Oracle since 2009 just one example where many solutions were offered through our partners so far.'