I have been messing around with some calculations using a break even analysis, trying to work out how much tonnage would be needed to generate certain amounts of profit. Formula used is Sx = VCx + FC + P.
S = Sales price
VC = Variable costs
FC = Fixed costs
P = Profit
x = number of kgs
We know 150000 kg equates to breakeven, but we dont know FC or VC. My understandijg would be that fixed costs would estimated much easier than VC, meaning we can fill the formula. Anyone have any rough ideas of what fixed costs would be per annum. I came up with between 6-8 million, but that is a real stab in the dark.
Intraday Spike, page-56
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