Calculate variable costs, fixed costs, and break-even point

Calculate variable costs, fixed costs, and break-even point

I am often surprised, if not shocked, when I see teams making big impact pricing decisions without calculating the variable costs to fix costs and the break-even point. Let’s walk through an example of a flower shop. The flower shop generates revenues of 450,000 and spends 216,000 on flowers, 150,000 on salaries, 60,000 on rent, and 50,000 on other costs. As a result, the annual…