More notes to myself on break even - 29 Jan 2020

Looking at break even from the framework of contribution margin is helpful for me to understand how each product/sale contributes to the operational costs of Brave as a whole.

If it's costing us $750,000 per year to run the organisation, then how many sales of what do we need to be sustainable. This is a different question to what each product needs in order to reach its own break even point.

Example:

If the marginal contribution of each button is $110 (or $3,850 for a 35 room building), then it would take 195 buildings per year to finance the whole coop.

If marginal contribution of ODetect is $500 per installation, then it's 1,500 installations...

Those are sales though, recurring fees from clients (approximately $100 per month each) also contribute to fixed costs: 1,000 clients = $1.2m per year so...