Economics. It actually talks about accouting. fixed cost or variable. The cost of materials and labor are variable costs, and fixed cost is such as rent or salary within a relevant range. Total costs are fixed plus variable cost. Break even is the point at which the fixed costs are recovered fromthe sale of goods but no profit is made. In this subject, I learned how to calculate the break even unit volume (dollar sales) and target volume (dollar sales), and how to get the payback periord on my investment? initial investment/annual profit?
Go back and revise the plan. Back to my dream business, I asked myself many question, imagine I start up my canvass painting business. Is my product marketable(profitable)? who is my target customer and market? Should I target another segment? what distribution chanel should I use? what price should I set?
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