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Sentences for "breakeven "
06 When volume is lost to cream skimmers because of the USO, net revenue losses (revenue minus cost) must be made up from the remaining volume to maintain breakeven status.
In a breakeven postal service total delivery profits from all routes plus profits from non-delivered mail must equal fixed upstream costs.
Volume Profits Volume Profits Delivered 8658 79 33 Non-delivered 1442 21 67 Because total delivery profits from delivered and non-delivered mail must equal fixed upstream costs, non-delivered mail plays an important role in reducing the revenue needs of a breakeven post.
Ceteris paribus, the higher the proportion of non-delivered mail, the lower the rates that a breakeven post must charge.
The more revenue that leaves the system because of cream skimming, the more rates must be increased on the remaining mail to maintain a breakeven status.
Again, we have adjusted the Poste Italiane revenue to breakeven in order to facilitate comparison.
60 50 40 30 20 Average Profit margin Percentage 10 0 (10) (20) (30) (40) (50) (60) 1 2 3 4 5 6 7 8 9 1011121314151617181920 Semi-decile (Routes by 5% Increments) a Revenue for Poste Italiane is increased by 24% to create breakeven conditions.
A postal service that is below breakeven will be less attractive to cream skimmers than otherwise.
As stated earlier, the profits from delivered and non-delivered mail must equal the upstream fixed cost in a breakeven post.
Suppose that a government decides to provide a subsidy to its breakeven postal service to offset losses on unprofitable routes because it wishes taxpayers and not rate payers to fund the USO.
A breakeven post with a uniform tariff would charge its average cost of 10 cents a piece for delivery throughout the country.
One Governor is said to have remarked at the public meeting that he thought the Postal Service needed some mechanism for recovering unforeseen expenses! You have already heard the doom and gloom projections about USPS finances generally and about this Recommended Decision not providing the Postal Service with sufficient revenue to breakeven in the current fiscal year.
If this initial position is assumed to be a breakeven position, then any other breakeven position must have this same contribution.
The second involves keeping the Postal Service at breakeven while the discount is changed.
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