The Service Formula by Hours What if you run a service based company where you don't sell things, you sell time like coaching? You have the added problem of not being to sell lost time - like last week. If you sell products a promotion will work to get rid of excess inventory. When you sell time there is no promotion for selling last week.

When you compute breakeven for hours, go for a yearly number, then bresak it down into smaller units. What don't sell to make breakeven in the first month has to be added to the remaining 11 months, etc.

Topics:​​ The Service Formula by Hours: Hour BE = Total Fixed Costs / Margin Contirbution by Hour

Next Show/Chapter 13: Activity Based Costing