Break even analysis is a useful tool to study the relationship between fixed cost and variable costs and returns. The Break even Point defines when an investment will generate a positive return. It can be viewed graphically or with simple mathematics. Break even analysis calculates the volume of production at a given price necessary to cover all costs. Break-even price analysis calculates the price necessary at a given level of production to cover all costs. To explain how Break even analysis works, it is necessary to define the cost items.
Fixed costs, which are incurred after the decision to enter into a business activity is made, are not directly related to the level of production. Fixed costs include, but are not limited to, depreciation on equipment, interest costs, taxes and general overhead expenses. Total fixed costs are the sum of the fixed costs.
Variable costs change in direct relation to volume of output. They may include cost of goods sold or production expenses, such as labor and electricity costs, feed, fuel, veterinary, irrigation and other expenses directly related to the production of a commodity or investment in a capital asset. Total variable costs (TVC) are the sum of the variable costs for the specified level of production or output. Average variable costs are the variable costs per unit of output or of TVC divided by units of output.
The Break even Point analysis must not be mistaken for the Payback Period, the time it takes to recover an investment.
In Value Based Management terms, a break even point should be defined as the Operating Profit margin level at which the business / investment is earning exactly the minimum acceptable Rate of Return, that is, its total cost of capital.
Image relevancy is important when it comes to image optimization for SEO. An image of a train on a page related to Ferrari will do you no good. I know its common sense but this step is so important that I just can't miss it out.
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Our focus has shifted from Social Media to VISUAL Social Media. This is a shift from Tell to Show. We are drawn to "visual content" online in more ways than ever before. The opportunity this provides for business is massive.
In short, it means that businesses or brands online need to take note of the stats. In 2012 alone we have seen You Tube pass 4 Billion Daily Video Views and Pinterest become the 4th largest driver of traffic worldwide. UPDATE: In fact, Pinterest, has just recently become the 2nd largest driver of traffic worldwide.
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People are drawn to visual content and take action based on its subtle cues faster than any other mediumâ€“faster than text, audio or video.
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- How to increase Likes on Facebook Photo?
- Make money with Instagram Likes
- Get paid to Pin on Pinterest
- How to get more Repins on Pinterest?
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One way to get search engine exposure is - post your photos to Twitter - with some good message of course. Then use Get Free Followers to boost Retweets on those.
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Do you want to be a certified public figure? Increasing your YouTube favorites can attract the attention of the video site; thus, your video can have the chance to be ranked up for a positive engagement. It plays a major role in SEO of that video.
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- How to get more Views on Youtube?
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If you happened to be one of those who have a YouTube channel, or a brand or a creator using video as a marketing tool then, I'm sure you must be wondering how you can get more YouTube subscribers to your channel and increase the reach of your YouTube videos.
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