Break-even Rate & Multiplier


  • Break-even analysis does not include other direct and reimbursable expense.
  • Assume that other direct and reimbursable expense is reimbursed dollar for dollar.
  • Break-even analysis does not include profit.
  • Break-even analysis shows the least amount that can be billed without suffering a loss.
  • The break-even rate is a good tool to use in fee negotiations.  The desired profit can be added to estimated production cost.

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