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Break even analysis
- Thread starter KillahBee
- Start date
what do you want to know broly, i'm good at this shit. seriously
R
revexrevex
Guest
Take the derivative of the formula and make it equal to 0 to find the focal points, after that analyze the right and left side of the derivative function to determine whether they are local/global maxima/minima
C
Crazy Ivan
Guest
AnobolicBowelMovementDoc should be all over this
KillahBee said:
i love cost management, seriously i can help you
KillahBee
New member
Re: Re: Break even analysis
Fixed Costs
---------------
1-variable costs
my fixed costs are pretty easy (printing, postage costs).
I am having trouble determining variable costs relevant to just this campaign. I can only think of labor cost.
and when it is all said and done- what is the proper execution of this formula (i.e. is their not a percentage involved with the variable costs?)
I can't believe you actually like this shit!!
basically- I am attempting to develop a marketing campaign for a professional basketball team. I just need to do an elementary BE analysis but I am having trouble. The formula I use is:Devastation said:
Fixed Costs
---------------
1-variable costs
my fixed costs are pretty easy (printing, postage costs).
I am having trouble determining variable costs relevant to just this campaign. I can only think of labor cost.
and when it is all said and done- what is the proper execution of this formula (i.e. is their not a percentage involved with the variable costs?)
I can't believe you actually like this shit!!
Sigmund Roid
New member
for the average bro here the break-even point is:
work income - mortgage - wife's nails - food - supps - taxes = gear money
work income - mortgage - wife's nails - food - supps - taxes = gear money
The fundamental equation is Y= mx+B where MX(is your variable cost per unit) and B is your fixed costs. You have to determine how much does it costs in terms of additional add dollars to put butts in the seats here and what is the expected increase in ticket sales from the advertising campaign.
Re: Re: Re: Break even analysis
Sales
-Var Costs
--------
=contribution margin or CM
CM
-Fixed Costs
---------
Income
to calculate BE you must take
total Fixed costs/
contribution margin PER UNIT
this gives you your BE sales in units
i don't know anything about the costs of a professional basketball team. i know there will be administrative costs, overhead, labor, where are you getting your addresses, etc. for the campaign. at least this is most likely. this is more of a marketing question. sorry i'm not much help there
KillahBee said:
Sales
-Var Costs
--------
=contribution margin or CM
CM
-Fixed Costs
---------
Income
to calculate BE you must take
total Fixed costs/
contribution margin PER UNIT
this gives you your BE sales in units
i don't know anything about the costs of a professional basketball team. i know there will be administrative costs, overhead, labor, where are you getting your addresses, etc. for the campaign. at least this is most likely. this is more of a marketing question. sorry i'm not much help there
KillahBee
New member
here is a problem I ran into: for this particular campaign, I realize that my only variable cost is going to be my labor cost. which, should amount to about 30% of revenue. however, doesn't this mean that my labor cost should be 30% of the revenue this ad generates? if that is so, how do I get this figure considering I need to get the BE point BEFORE I can know what revenue i need to achieve in order to make a profit....
KillahBee said:
is this for a project at work or are you doing this for school? i need to know
ok then. you need to come up with some estimations and apply your percentages, labor @ 30% of revenues generated. this labor will be a constant per advertisement/mailer.
example if the ads generate $1 of revenue, .30 of that is labors vc. it won't matter if you send out 100 flyers or 100,000 it is still $.30 per flyer labor. the total dollar amount spent on labor will vary, of course.
you need to figure up, calculate, what your fixed will be and figure what your Variable Cost per mailer is going to be. with that you can figure your BE
example if the ads generate $1 of revenue, .30 of that is labors vc. it won't matter if you send out 100 flyers or 100,000 it is still $.30 per flyer labor. the total dollar amount spent on labor will vary, of course.
you need to figure up, calculate, what your fixed will be and figure what your Variable Cost per mailer is going to be. with that you can figure your BE
