It would be great if you could relate the question into aims of expanding and to maximise its costs. Thanks
2006-10-27 05:19:59 · 6 answers · asked by Damien S 1 in Business & Finance ➔ Small Business
The aims are such as expanding the business or maximising its costs
2006-10-27 05:37:50 · update #1
Until a business sells enough units (of production or service) it is losing money. Once sales exceed that break-even figure we are into profit territory. Over and above that break-even point profits are simply the sales minus the marginal cost of providing the goods/service since all of the over-heads or fixed costs of running the business will have been covered. Minimising fixed costs will minimise your break-even figure. Minimising your marginal costs will maximise your pofits on sales in excess of your break-even figure.
2006-10-27 07:45:18 · answer #1 · answered by Frank M 3 · 0⤊ 0⤋
If you have no idea of your cost --how can you possibly profit from any venture. You always have to be aware of increases in all cost no matter what the venture. The cost overruns will kill your p[profit and put you out of business just as fast as you got into business. Why would any business's look to maximize it's cost. That is just the opposite of good business. You want to minimize your cost in order to make a fair profit.
2006-10-27 05:41:59 · answer #2 · answered by golferwhoworks 7 · 0⤊ 1⤋
A harm-even prognosis is outstanding for tracking the form of your acheivements on the subject of your goals and goals. it extremely is an dazzling 'yardstick' for protecting a watch on income and loss margins. i could say that a harm-even prognosis is considerable if a corporation is to prevail. the main goals for a small corporation commencing out, is right here: - To make income. - to proceed to exist. Obviosuly, you will in simple terms be attentive to in case you're doing the above, in case you be attentive to for a certainty that your making a income. A harm-even prognosis can in simple terms try this. in the experience that your making income, then the 2d objective is going without asserting; you will attain that objective too. wish this helps.
2016-12-16 15:21:59 · answer #3 · answered by broscious 3 · 0⤊ 0⤋
The Break even analysis gives you a picture of your business at a point where you need to be in order to not loose money. It is a bench mark that you need to know, and be aware of what it would take to get to that point.
2006-10-27 05:41:59 · answer #4 · answered by Ricardo R 2 · 1⤊ 0⤋
The company has determined its fixed cost to make something and they know what their sale price can be. Breakeven analysis tells them how many products that they need to sell in oreder to breakeven on their fixed costs. They then know that any additional sales will cover their variable costs and add profit to the bottom line.
2006-10-27 05:43:07 · answer #5 · answered by waggy_33 6 · 0⤊ 1⤋
'maximise its costs' ? That is what public bodies do, commercial organisations try to maximise revenue and if applicable, GP.
2006-10-27 05:28:32 · answer #6 · answered by Clive 6 · 0⤊ 1⤋