Hello, Guest   |   Login here

Break-even Scenario 5 - Purchase Costs of Licenses

Reduce Purchase Cost of Licences in Y1 and Y2 - Find Breakeven: 1st trial decrease unit cost to purchase licences from 21,000 in baseline to 15,000 in Y1 and Y2.

License Price 30,000 for Y1 and Y2. Unit cost of licenses remains the same, 21,000 for Y1 and Y2.

Management is tasked with finding the break-even when the cost of licenses is reduced to 15,000 in Y1 and Y2 and compare it with the baseline case.

i) In the FinancialLabGo To > Groups 1 and 2 > Cash Flows Y1 and Y2 and enter the new unit purchase cost, 15,000, in every month as 

Subscribe today and learn the fundamentals

It seems you don't have access to the exclusive content of The Course.

In order to gain access to the content of The Course you will have to register with EntreprenAble. Membership with EntreprenAble will also give you access to our interactive Business Game and Accounting Simulations.

Subscribe today and get:

  • Unlimited website access to The Course
  • Optimized view for Desktop, Tablet and Mobile devices
  • Free 7-day, no obligation trial - normally £15
Start free trial
Test-drive the system for free