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Chapter 5- Just Keeping Above Water – Breaking Even in week 3
Last week we discussed details of the second week which was impacted by the bad weather. This week turned out to be a “breakeven” week. What is breakeven? Read on…
This week was better than the last week.The weather cooperated but only 23 lemonades were sold or about three lemonades per day versus the planned 10 lemonades per day. At 23 lemonade sale turned out to be your “breakeven number”.
What is breakeven? The breakeven point is when sales and cost are equal, therefore, there is no gain or loss and you break even. So you will have to sell at least 23 lemonade a week to break even otherwise you start to lose money. How can you make sure that you sell at least 23 lemonade a week, otherwise you will have to find creative ways to cut the cost. You know that keeping your costs down is anyway good idea, so you start thinking for ways which we will discuss in the next chapter. For now, this is how your 3rd week numbers look –
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