Chief Executive

DECEMBER 20, 2022

Some organizations have been compelled to provide additional compensation to reflect the current inflationary environment and these adjustments are often provided as part of a variable pay program (e.g., Twenty-seven percent of survey respondents reported providing supplemental compensation or benefits beyond a higher salary increase budget.

Compensation 97

Compensation Variable Costs Retention Fixed Costs 97

Monday Task Management

MARCH 15, 2022

A basic break-even analysis template should include customizable fields where you can input all the variable costs of your new venture — including fixed costs, price, volume, and other factors that could ultimately affect your net profit. This helps you figure out when you’ll break even. Image Source ).

Revenue 52

Revenue Cash Flow Variable Costs Operations 52

Harvard Business Review

OCTOBER 29, 2015

This makes financial sense in industries with high fixed costs and low variable costs: larger sizes enable the company to charge higher prices that, even if they are just slightly larger, absorb a higher portion of fixed costs, while reducing packaging cost per volume and attracting value-minded consumers.

Fixed Costs 14

Fixed Costs Variable Costs Marketing Sales 14

Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral.

Fixed Costs 14

Fixed Costs Assets Cash Flow Variable Costs 14

Harvard Business Review

MAY 2, 2013

The key components that lead to a solution are as follows: Understand the dynamics of a high fixed cost/low variable cost industry. While pharma companies spend billions on research, the actual cost of manufacturing a treatment (such as a pill) is minimal. This cost structure enables pricing flexibility.

Variable Costs 10

Variable Costs Fixed Costs Cash Flow Revenue 10

Harvard Business Review

JUNE 4, 2015

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. ” There are plenty of other industries–such as restaurants, barbershops, and health clubs–that can also benefit from surge pricing.

Variable Costs 12

Variable Costs Fixed Costs Implementation Travel 12