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Using the weighted contribution margin allows the center planners to see a more accurate estimate of visits needed for the center to break even.
You need $500,000 for your break even, but with the next $100,000 in sales volume, you produce the 5% planned profit.
First, DHCR determines the dollar number needed to get the owner to the break even point.
The formula for break even analysis on sales is shown below:
SI) has announced that its consumer banking operations in India will break even by 2016.
Executives are also monitoring the finances of three hospitals - Walsall, Hereford and University Hospital North Staffordshire - whose unsteady accounts are forecasting a break even which could suddenly change due to contracts and saving plans.
The airline has averaged 17 passengers a day through the first half of 2005 but needs about 21 to break even on a flight, according to city officials and Los Angeles World Airports statistics.
Hutchison Whampoa's 3G mobile telecomms company 3 UK is on course to break even by the end of 2005 according to 3 UK's CEO Bob Fuller.
After years of confusion, Bill Medina of Medina Construction finally found a simple formula to calculate his company's break even point--the point when gross margin equals overhead.
It is targeting to break even by the end of this year.
Although entrepreneurs often fail to realize the significance of recognizing and reaching the break-even point in the financial cycle, understanding what it takes to break even is critical to making any business profitable.
So, to see how much added business it will take to break even, the marketing manager can use the following equation in which x" equals the volume of new business required to break even on the expense of hiring another salesperson.