One Company is looking for funding.
An investor is proposing that the company take on another $1M to expand the company.
The average customer pays $125,000 with 20% of that being variable costs.
a. What is the unit contribution for each customer?
b. How many additional customers do they need to break even on the $1M assuming no interest or additional fees? Looking at the segment of available customers, there are about 100 companies in the segment.
c. What share or percentage of the segment do they need to break even?