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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1010 |
Essay's paper body
But the operating expenses are going to increase at a decreasing rate during the three-year period, as the company builds up its name. This means that the percentage of variable costs over sales is going to decrease from about 16% in 2006 to 11% by the end of 2008.
Break-even analysis
The Breakeven analysis is designed to determine that point in sales at which you have enough money left over after covering your Variable Costs (Cost of Sales) to pay all of the company Fixed Costs (Operating Expenses or SG&A Expense)
The gross profit based on our projections is expected to be about 65 millions of dollars and the gross profit margin is 83%
At the breakeven point, income perfectly balances against Costs + Expenses...
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The breakeven point is reached at 67 millions. This means that we should break even before the end of the second part of 2006.
Sales Forecasts
The sales will benefit both from the aggressive advertising campaign and from the partnerships with the most important carriers.
We expect the sales to increase in the three-year period for the effect of our campaign, at an increasing rate...
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