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“Today Shapes Tomorrow

 Published Every Monday    Volume  131 Special Edition August 3, 2009

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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.  Weather cooperated but only 23 lemonades were sold or about three lemonades per day versus planned 10 lemonades per day.  At 23 lemonades 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 lemonades a week to breakeven otherwise you start to lose money.  How can you make sure that you sell at least 23 lemonades 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 –

Learn more about…

What is Credit History?  Why is it important to have a good credit history? Volume 12.    

What is Economy, Business, Workers, Goods,  Services,  Stock, DOW, S&P500, and NASDAQ in Volume 16. 

Does it pay to study hard? Volume 17.    

What is Currency and Foreign Currency Exchange rate? Volume 14What is stronger or weaker currency? Volume 20. What does the dollar slide mean? Volume 32.

How does money grow in a bank? Volume 21. 

What is Fed Funds rate and Discount rate? Volume 22

What does the interest rate cut mean for you? What is APR? Volume 23. 

How to read stock information? Volume 25. 

What is “Black Monday”…Crash of 87”? Volume 31.

Who are CEO, CFO, Shareholders, and the Board of Directors? What is SOX? Volume 33

What does “$4.95 + Tax” means?  Volume 47.

What is a Recession?  What is a Depression? Volume 48.

What is Mergers & Acquisition (M&A)?  What is a Merger?  Volume 49.

What is ADR?  Volume 62.

What does buying back of shares means?  Volume 63.

Why is consumer confidence so important?  Volume 64.


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