• Asia-Pacific Journal of Business
• /
• v.12 no.1
• /
• pp.151-163
• /
• 2021

Purpose - The break-even point refers to the point where total profit and total cost coincide, and from this point on, the entrepreneur's decision-making takes a different route. Strategic decisions can be made for more efficient operation and eventually for more likelihood for growth and sustainability if a startup figures out when it recoups the investment and switches to a net profit. Design/methodology/approach - 748 creativity and skill-based sole proprietors in manufacturing industry were examined to demonstrate the effect of the entrepreneur's entrepreneurial experience and education level, the business launch preparation time, or the self-financing on the achievement of break-even point. Findings - While the business launch preparation time lowered the likelihood of reaching a break-even point, self-financing increased the likelihood. As a result of further analysis by subdividing into subgroups according to skill level, only the business launch preparation time was statistically significant in the highly skilled industries. In the low skilled industries, in addition to the business launch preparation time, the CEO's education level and the self-financing were statistically significant. Research implications or Originality - The longer the business launch preparation time, the higher the start-up cost, which increases the burden of initial cost recovery, and the agile response to market changes is thereby delayed, resulting in the business idea losing its appeal. Self-financing not only provides stability and strong motivation for the business operation but also promotes careful spending which contributes to the achievement of break-even point. In particular, it is found that practical experience is more useful than theoretical knowledge in low skilled industries. Due to the limitation of secondary data based on the recollection, the time required to reach a break-even point, percentage of financing sources, etc. may include cognitive errors. In addition, variables are not included that explain the characteristics of creativity and skill-based sole proprietorship, so it is necessary to exercise caution with the actual application.

• Journal of Biosystems Engineering
• /
• v.10 no.2
• /
• pp.27-35
• /
• 1985

This study was carried out to determine the optimum size and number of farm machines for various sizes of land coverage of the cooperative farm machinery utilization systems in Korea-namely Saemaul Mechanized Farming Group (SMFG). Fifty-one SMFG were selected from 8 counties in Chonnam province, and ownership, operation and management of farm machinery were surveyed. Annual covered area, cost and the break-even-point area of farm machinery were analyzed on the bases of the surveyed data and the present governmental subsidy policy, and then the optimum level of farm machinery ownership was determined. The results are summarized as follows: 1. The break-even-point areas of the tractors of 22-23ps, 28ps and 47-50ps were estimated as 12.1ha, 15.3ha and 21.6ha, respectively. The optimum size of a tractor for land sizes of 10-20ha, 20-30ha, and 30-40ha were estimated as 22-23ps, 28ps, and 47-50ps, respectively. 2. The break-even-point area of a rice transplanter was estimated as 3.3ha. The optimum numbers of rice transplanter for land sizes of 10-20ha, 20-30ha, and 30-40ha were estimated as 2,3, and 4, respectively. 3. The break-even-point areas of a speed sprayer (attached on power tiller) and a power sprayer were estimated as 114.6ha and 15.3ha, respectively. The optimum numbers of power sprayer for land sizes of 10-20ha, 20-30ha, and 30-40ha were estimated as 2,3 and 4, respectively. A speed sprayer is desirable for an area of more than 30ha coverage. 4. The break-even-point area of a combine was estimated as 10.7ha. The optimum numbers of combine for land sizes of 10-20ha, 20-30ha, and 30-40ha were estimated as 1,2, and 3, respectively.

• Journal of the Korean Institute of Landscape Architecture
• /
• v.24 no.3
• /
• pp.109-114
• /
• 1996

Generally, the size of our recreation sites is selected through use demand at the peak day. At same time, scale economic and diseconomic are applied to a recreation site. If you are a rational decision-maker, you would like to select the size of your park at profit-maximization point. This study is the first try for modelling a Gain-Loss by the size options of a theme park. For testing the validity of a financial model to select the size of theme parks. Ever-Land, Seoul-Land, Dream-Land's operating size was analyzed. By the size options, the revenue of each park was compared with cost. The profit-maximization point and break-even point of each park were found. Ever-Land and Dream-Land's size was selected between the profit-maximization point and the break-even point. In contrast with Ever-Land and Dream-Land's, Seoul-Land's was selected upper the break-even point. To increase the utility of this model in selecting the size of a theme park, a decision-maker must keep in mind a few limits of this study. That is, 1) this model can not be applied at public parks. 2) Sometimes the others can be more important than financial revenue and cost. Finally, there is the validity of Gain-Loss Model in estimating only the financial revenues and costs through the size options.

• Journal of radiological science and technology
• /
• v.8 no.2
• /
• pp.29-45
• /
• 1985

Computed Tomography Scanner (CT) is highly expensive in operation as well as purchasing. That reason may cause not only to increase the burden of patients but also to waste the capital resources leading to financial difficulties. However the numbers of CT installed throughout the country is increasing, because of efficiency in medical care, patient's concern, competitions among the hospitals within the same area. In the non-Metropolitan area the scanners were expected to be less utilized and less profitable. Nine hospitals equipped with the CT were studied on the utilization of that equipment during the period from November 1984 to February 1985 in non-Metropolitan area and break-even point in one hospital was analyzed for estimating profitabilities. The results were as follows ; 1. Among those nine hospitals, four hospitals had less than 400 beds, which is one of the restrictive minimum standards on the installation of Whole-body Computed Tomography Scanner. 2. The operating time during the normal operation period was longer than those of any other studies, but the accumulated down time was also longer than those of any other studies. The average number of scanning per week for each CT was 45, while the estimated number of for the break-even point was 56.7 cases. 3. When the downtime was excluded in calculating the average operation would be much closer to the cases for the break-even point. Therefore the break-down of the equipment was to be a main cause of the low profitability. 4. The average scanning rate for head area was 33.6%, however three of the nine hospitals showed about 20%. 5. If scanning ratio for the body parts excepting head was increased, the number of scanning for the break-even point would be diminished. 6. The small size hospital especially located near the Metropolitan area showed largest loss in the CT operation. In purchasing the highly expensive equipments in hospitals, demand should be taken into account and planning is recommended.

• Journal of Hydrogen and New Energy
• /
• v.26 no.1
• /
• pp.35-44
• /
• 2015

This paper deals with the economic analysis of domestic fuel cell vehicles considering subsidy and hydrogen price in 2015 and 2025. We selected TFCV (Tucson fuel cell vehicle) and TDV (Tucson diesel vehicle) to identify the economic feasibility of fuel cell vehicles compared with conventional internal combustion engine vehicles. We made some sensitivity analysis by changing input factors such as the size of the subsidy, the hydrogen price and the discount rate. Also, we made a break-even point analysis on hydrogen prices that equalize the economic feasibility of TFCV and TDV in 2025. As a result, TFCV is not economical in 2015 due to the relatively high prices of hydrogen and vehicles. If the sale prices of TFCV are 30,000,000 won and 35,000,000 won in 2025, then the break-even points of hydrogen prices are equal to 7,483 won/kg and 5,043 won/kg.

• Journal of Korean Society of Forest Science
• /
• v.96 no.6
• /
• pp.661-666
• /
• 2007

This study is to give investment information to someone who will manage a chestnut orchard or has been managing a chestnut orchard by means of profit by producers' chestnut price and a term of investment retrieval because of fluctuations in chestnut prices in the opening time by FTA. This study, hence, evaluated 133 families who manage a chestnut orchard at Jin-ju, San-cheoung in Gyeong-nam, Gu-rae in Jeon-nam, Gong-ju, Bu-yeo, Cheoung-yang in Chung-nam. This study used IRR, B/C Ration, NPV and the break-even point sales methods. As the result of this study, there are investment value at much than 1,140 won/kg including wages themselves at 4% interest, however, there are not investment value at less than 1,140 won/kg in the same economic condition. Furthermore, an investor could retrieve the investment at sixteen year and the break-even point sales is 32,963,000 won/ha. If 3,000 won/kg, an investor could retrieve the investment at nine year and the break-even point sales is 15,176,000 won.

• Journal of Biosystems Engineering
• /
• v.34 no.4
• /
• pp.228-233
• /
• 2009

In order to cut the round bale easily, a roughage cut-feeder for the round bale was developed in this study. This study consists of two parts. One is development of a cutting mechanism and a performance test reported in the previous paper. This is the second part of the study. For the study, recent trend of traditional cutting system was analyzed. Also, cost of the prototype cut-feeder was analyzed and determine the break-even point of farm size was determined by comparing with traditional method using a traditional cutter. A prototype cut-feeder was investigated with the fact that working performance, fiber length and shape of roughage and feeding quality was good. Operating cost of the prototype cut-feeder decreased rapidly with an increase of farm size. Break-even point in terms of farm size was 36 heads for beef and 28 heads for dairy. Also, costs estimated were 118,000 won/head year and 148,000 won/head year, respectively.

• The Korean Journal of Pain
• /
• v.30 no.4
• /
• pp.272-280
• /
• 2017

Background: The high cost of intrathecal morphine pump (ITMP) implantation may be the main obstacle to its use. Since July 2014, the Korean national health insurance (NHI) program began paying 50% of the ITMP implantation cost in select refractory chronic pain patients. The aims of this study were to investigate the financial break-even point and patients' satisfaction in patients with ITMP treatment after the initiation of the NHI reimbursement. Methods: We collected data retrospectively or via direct phone calls to patients who underwent ITMP implantation at a single university-based tertiary hospital between July 2014 and May 2016. Pain severity, changes in the morphine equivalent daily dosage (MEDD), any adverse events, and patients' satisfaction were determined. We calculated the financial break-even point of ITMP implantation via investigating the patient's actual medical costs and insurance information. Results: During the studied period, 23 patients received ITMP implantation, and 20 patients were included in our study. Scores on an 11-point numeric rating scale (NRS) for pain were significantly reduced compared to the baseline value (P < 0.001). The MEDD before ITMP implantation was 0.59 [IQR: 0.55-0.82]. The total MEDD increased steadily to 0.77 [IQR: 0.53-1.08] at 1 year, which was 126% of the baseline (P < 0.001). More than a half (60%) responded that the ITMP therapy was somewhat satisfying. The financial break-even point was 28 months for ITMP treatment after the NHI reimbursement policy. Conclusions: ITMP provided effective chronic pain management with improved satisfaction and reasonable financial break-even point of 28 months with 50% financial coverage by NHI program.

• 한국벤처창업학회:학술대회논문집
• /
• 2006.11a
• /
• pp.275-299
• /
• 2006

This study aims at examining the early-stage financing scale for entrepreneur to build small & medium business. The data was collected from the DART (Data Analysis, Retrieval and Transfer System) of Korean Financial Supervisory Service(FSS) in the main. The results of this study show that small & medium business needs equipment & operation financing for about 37 months extent to reach Break-Even Point. The limitations of this study are data collections from registered firms on Korean FSS primarily and no showing about the early stage financing scale for building small & Medium Business concretely. Small & Medium business entrepreneur have to make a early stage finance plan according to a necessary equipment and operating cost in their business field for 37 months extent.

• Journal of the Korea Safety Management & Science
• /
• v.14 no.2
• /
• pp.221-228
• /
• 2012

This paper analyzed twenty-six production-related KPI(Key Performance indicator) factors of business diagnosis, such as personnel, equipment, materials, operations and quality affecting company business competition to 186 small machinery manufacturers in 2010. Also, we explained the concept of Business Positioning and divided research subjects into four Business Positioning Groups formed break-even point ratio & fixed cost ratio to sales and then we compared between the 4 groups using Logistic Regression analysis by SAS statistical software package. The objective of this study is two-fold. The first is to find out production-related KPI factor of superior Business Positioning Group. The second is to suggest improvement ways for small manufacturers in order to get better profitable Business Positioning.