Breakeven Analysis and Operating Leverage: Understanding Cash Flow
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Manufacturer: Harvard Business School Press
Binding: Digital
Author: Harvard Business School Press
Publisher: Harvard Business School Press
Publication Date: 2004-02-18
Reading Level: 8
Description: This chapter explains breakeven analysis--how much (or how much more) you need to sell to pay for a fixed investment--another financial tool that many managers find useful in making decisions. The chapter elucidates this and several other concepts that that every manager should understand (fixed costs, variable costs, contribution margin, and operating leverage) to determine at what point you will break even on your cash flow and when you will exceed it.
