Your organization is going to respond to a request-for-proposals (RFP) to provid
ID: 3245100 • Letter: Y
Question
Your organization is going to respond to a request-for-proposals (RFP) to provide a high security courier service to a law firm with four offices located in Tampa, Jacksonville, Orlando, and West Palm Beach. Explain how you could use breakeven analysis to determine your bid amount on the proposal.
Use the Profit Model to demonstrate your response. Ensure you include a well considered discussion of the revenue and expenses. In all discussion question responses ensure that you correctly reference sources you used in researching and analyzing your response. Use appropriate scholarly citation methods.
Explanation / Answer
If you can accurately forecast your costs and sales, conducting a breakeven analysis is a matter of simple math. A company has broken even when its total sales or revenues equal its total expenses. At the breakeven point, no profit has been made, nor have any losses been incurred. This calculation is critical for any business owner, because the breakeven point is the lower limit of profit when determining margins.
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