Revenue, ROI and Variable Costs

An HBR Refresher on Breakeven Quantity

Harvard Business Review

JUNE 22, 2015

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. The variable costs to make each pair of flip flops are $14.00.

Variable Costs

Variable Costs Fixed Costs Advertising ROI

Who Rules the Web Now?

Harvard Business Review

FEBRUARY 22, 2011

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. Greater scale bestows greater competitive advantage.

Advertising

Advertising Variable Costs Scaling Media

OrgDev Digest

An HBR Refresher on Breakeven Quantity

Who Rules the Web Now?

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