Hi all,
I am trying to calculate the Breakeven point. I am a bit puzzled about how to treat Capex and Depreciation.
Contribution margin is easy, revenues - variable costs. But the fixed costs? Should I include only depreciation? Or only "fixed" maintenance capex instead? If the two are equal (steady state) there should be no difference, but just to be sure.
Maybe there is a difference between "accounting" breakeven (calculated with depreciation) and "cash based" breakeven (calculated with capex)
thanks
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