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The concept is similar to a class of mainly by the manufacturer, referred to as "cost - number - profit", or CVP analysis to make decisions. When A company use CVP to determine, in A given period of time, covering all the fixed cost and variable cost, and the organization is at or above the breakeven point. As a manufacturer, once you've written a check building rent, utilities, insurance, salary, etc. During the month, you have more flexibility, based on its profit ability to accept or reject the order.
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Please note that this is a completely different business model of online rival Amazon.com (NASDAQ: AMZN), it is current allowance of sacrifice, to scale is more and more large retailers, in some uncertain commitments consistent profits in the future.
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