![]() ![]() You also might consider refinancing debt to take advantage of today’s low interest rates and renegotiating key contracts with lessors, insurance providers and suppliers. Another solution involves cost cutting measures, such as carrying less inventory and furloughing workers. One solution is to convert as many fixed costs into variable costs as possible. If either of these variables changes, the breakeven point will change.ĭuring the COVID-19 pandemic, distressed companies may have taken measures to reduce their breakeven points. In the example, variable expenses must remain at 90% of revenue and fixed expenses must stay at $2 million.
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