Finance


Do The Math - Digging a Hole By Discounting Your Services



                         Fixed Cost in $$
Break-Even = ________________
                       1-Variable Costs %


or

          FC $
BE = ______

         1-VC%


Remember: 1-Variable Cost% = 1-VC% = Margin% (or Contribution Margin%)


   

Extra Sales Needed to Make Up the Discount Offered

  


=

   

Discount Offered
_______________

1-Variable Cost %

 


=

In the Example:

5,000
_____  =  16,667
  .30




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