Download Breakeven Analysis: The Definitive Guide to by Michael Cafferky PDF

By Michael Cafferky

This moment version keeps with the winning complete selection of cost-volume-pro t functions. no matter if you are a enterprise specialist, entrepreneur, enterprise professor, or scholar, you'll bene t from this one cease how-to booklet of formulation, causes, and examples. This re-creation deals quite a lot of subject matters, from calculating uncomplicated breakeven, to facing a number of items, combined expenditures, altering expenditures, and altering costs. Michael E. Cafferky is the Ruth McKee Chair for Entrepreneurship and company Ethics at Southern Adventist University's tuition of commercial and administration. In an addition to a doctoral measure in company from Anderson college Falls university of commercial he additionally holds masters levels in public wellbeing and fitness and faith. the writer of 8 books, Cafferky is a member of the Academy of administration and the Christian enterprise school organization. He has bought Southern's President's Award for Excellence in Scholarship and the nationwide Sharon Johnson Award from the Christian company college organization

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Now let’s use this in a couple of examples. Example 2 For 20 years Olympia Community Theater has been selling tickets to its annual 3-week production of Fiddler on the Roof. The Board of Trustees for Olympia has decided that this year Olympia should sell tickets at three different prices: $6 (children), $10 (adults), and $8 (senior citizens). For the production, Olympia Community Theater Company rents the old and quite small (125 seats) Paramount Theater. 4. 95 46 Breakeven Analysis props, lighting equipment, and costumes, using these resources for a total of 15 performances of the play.

The operational ability to prepare and serve each category of food is at the core of the business. Breakeven thinking can be extended into the operations in this type of business by considering the mix of tables or service areas provided. For example, if your restaurant only has booths seating six people each, and you have 20 booths, you could be limiting your ability to break even since a single customer coming in will tie up a whole booth. 3 Limitations Like all methods of estimating breakeven, this approach has its limitations.

Competition for the restaurant dollar can be intense in some markets. Fixed costs for a restaurant include marketing expenses, manager’s salary and benefits, general administrative expenses, telephone, Internet, cable TV, interest, licenses, bank charges, utilities, repairs, insurance, Cost of Goods Sold Method 23 occupancy costs such as rent, maintenance, janitorial services, depreciation, and other operating expenses. In some restaurants music and entertainment might be considered fixed costs.

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