Strategy Driven

JULY 31, 2019

Differentiate between fixed costs, such as rent and payroll, and variable costs, such as advertising and delivery. Develop a cash-flow statement. Some business planning software programs will help you make these projections. Plus it’s a useful number for comparing with different standard industry ratios.

Finance 10

Finance Planning Development SWOT 10

Harvard Business Review

JULY 2, 2014

It’s a simple calculation to determine how many units must be sold at a given price to cover one’s fixed costs. Assume she must incur a fixed cost of $25,500 to produce and sell a kite. These costs are fixed because they will not change with the number of kites sold. That’s the breakeven point.

Analysis 15

Analysis Fixed Costs Price Cost 15

Harvard Business Review

JULY 2, 2014

It’s a simple calculation to determine how many units must be sold at a given price to cover one’s fixed costs. Assume she must incur a fixed cost of $25,500 to produce and sell a kite. These costs are fixed because they will not change with the number of kites sold. That’s the breakeven point.

Analysis 8

Analysis Fixed Costs Price Cost 8

Harvard Business Review

MAY 21, 2015

The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. And SunPower, the second largest U.S. Meanwhile, utilities are not standing idle.

Energy 8

Energy Transportation Software Price 8

Harvard Business Review

OCTOBER 5, 2017

It could be because “software development typically requires large upfront fixed costs,” meaning that firms that are already pretty large are the ones who can afford to invest in it. But why is IT leading to winner-take-all competition? Second, intangibles complement each other.

Document 8

Document Industry Software Fixed Costs 8

Harvard Business Review

MAY 19, 2015

As the technology develops, GE could revamp this and other plants into general printer farms supplying all of its manufacturing divisions. That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product.

Engineering 8

Engineering Learning Curve Fixed Costs Competitive Advantage 8

Harvard Business Review

MARCH 18, 2013

We didn't want to burden the organization with fixed costs. Almost everything had to be free, and the few things we paid for had to be scalable so that the unit costs would eventually approach zero. Software development" and "hardware" are bad words. This removed the biggest bottleneck to innovation — us.

Budgeting 8

Budgeting Software Entrepreneur Fixed Costs 8