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S2E12: BCG Live Case Interview Example: Market Entry

Strategy Simplified

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How Much Profit Do We Have to Break Even?

"I think that means that we'll be able to break even in less than two years," he said. "So how do we calculate with, we're breaking it or not? When do we break it?" 'We break even when profit is equal to zero,' the company's chief financial officer replied.'And so what do we have to have for profit to be equal to zero?'"'How much', you say 7.4 million and I'm sorry, 6.4 million,'" she asked. "'What does that represent?'" He answered: 'That 5.4 or 6.4 represents total revenue over the two year period.' She then added 137.6 million as a cost

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