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., a one-time bonus) as opposed to an increase in base salary. Source: Korn Ferry (October 2022).

Compensation 97

Compensation Variable Costs Retention Fixed Costs 97

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. 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.

Variable Costs 18

Variable Costs Fixed Costs Sales Sales 18

Harvard Business Review

OCTOBER 13, 2017

Many leaders look at profit margin, which measures the total amount by which revenue from sales exceeds costs. But, Knight explains, if you do the calculation differently, taking out the variable costs (more on how to do that below), you’d get the contribution margin. ” What Is Contribution Margin?

Variable Costs 15

Variable Costs Fixed Costs Revenue Sales 15

Harvard Business Review

JUNE 22, 2015

To figure total costs you first multiply the unit quantity sold by the variable costs per unit, then you add the fixed costs. Like this: Note that Price per unit – Variable costs per unit is equal to the Contribution margin per unit. The variable costs to make each pair of flip flops are $14.00.

Variable Costs 15

Variable Costs Fixed Costs Advertising ROI 15

Harvard Business Review

JULY 2, 2014

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. 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.

Variable Costs 10

Variable Costs Fixed Costs Sales Sales 10

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

MAY 8, 2012

Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. Through the outsourcing arrangements, Bharti dramatically lowered its costs while ensuring high quality for customers, since vendors had world-class competencies in their domains.

Balance Sheet 12

Balance Sheet Variable Costs Telecommunications Fixed Costs 12