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Variable Compensation: All HR Needs to Know

AIHR

Variable compensation can be a useful tool for rewarding employees’ performance to provide measurable results for your business. Let’s dive into all you need to know about variable compensation. Contents What is variable compensation? What is variable compensation? Examples of variable compensation.

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A Quick Guide to Breakeven Analysis

Harvard Business Review

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. What if we want to make an investment and increase the fixed costs? That’s the breakeven point.

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Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds costs. “Contribution margin shows you the aggregate amount of revenue available after variable costs to cover fixed expenses and provide profit to the company,” Knight says. How do you calculate it?

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Five Ways to Retain Employees Forever

Harvard Business Review

Revenue-sharing. This will align their interests with the company's revenue and profit goals and will serve as an inherent incentive to stay with the company as it grows. The rewards you give your employees should speak to their emotional needs and should go beyond their monetary compensation.

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A Quick Guide to Breakeven Analysis

Harvard Business Review

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. What if we want to make an investment and increase the fixed costs? That’s the breakeven point.

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An HBR Refresher on Breakeven Quantity

Harvard Business Review

.” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. The BEQ will be present on both sides of this equation because the number of units sold affects both the revenue the firm earns as well as the costs it must incur to earn it.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. Cost reduction requires an honest and thorough reassessment of everything the health system does and ultimately, a change in the organization’s operating culture. A recent Navigant survey found that U.S.