em session breakeven analysis

em session breakeven analysis - Marketers Toolkit Breakeven...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Marketer’s Toolkit Breakeven Analysis Gary Minkoff
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Marketer’s Toolkit-Breakeven Analysis Breakeven point (BEP) Quantity of incremental units an organization needs to cover its costs –this is how it recovers its investment in the product/service Above BEP--Profit or surplus(making money) Below BEP—Loss or deficit (losing money) Breakeven Analysis Used to assess various marketing programs • Advertising Promotion/loyalty New staff/technology Cannnibalization
Background image of page 2
Marketer’s Toolkit-Breakeven Analysis (cont) Total Revenue (price x quantity sold) - Variable Cost (manufacturing and non mfg) = Contribution Margin CM Contribution Margin -Fixed Cost = Net Income (Profit) or Net Loss Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted, or the amount that can be contributed to the organization to cover fixed expenses with the remainder considered profit
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

em session breakeven analysis - Marketers Toolkit Breakeven...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online