The break-even formula
Can you divide the contribution by the fixed cost or the fixed cost by the contribution? Does it matter?
Just think about it for a second. The contribution per unit is far smaller than the fixed cost. A value dividing it this way would be a lot smaller than zero. Does this make much sense?
Original post by Glen_Nichols
Just think about it for a second. The contribution per unit is far smaller than the fixed cost. A value dividing it this way would be a lot smaller than zero. Does this make much sense?
Yeah i just realized, i miss calculated. Thanks!
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