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If I have solved for expected profits and DOL for a company, then how do I solve for the biggest shortfall the company can have
If I have solved for expected profits and DOL for a company, then how do I solve for the biggest shortfall the company can have and still be profitable? Assume I already know fixed costs, annual revenues, and variable cost % of annual revenues from the given problem.
Would using the following work: Profit = Revenues - Fixed costs - (variable cost%)*(Revenues), and solve for revenues by setting profit equal to 0?
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