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Conversely, factors in the report that could negatively affect one’s credit score include late payments, high balances relative to limits, and large amounts of overdue debt. Late payments demonstrate an inability or unwillingness to meet financial obligations on time which can lead lenders to question whether they should provide financing for any future loans. High balances relative to limits indicate overextension of finances which can result in higher interest rates being charged if approved for financing. Lastly, large amounts of overdue debt may prevent approval from some lenders as it shows an inability or unwillingness to pay back borrowed funds in a timely manner. number of knee replacements that must be performed each month in order for the wing to cover all its costs and not incur any losses. The BEP formula is as follows: Fixed Costs/Unit Contribution Margin = BEP. For example, if the wing’s fixed costs are $10,000 and their unit contribution margin is $500 then 10,000/500 = 20 units. This means they would need to perform at least 20 knee replacement surgeries each month in order to break-even.
It is important to note that this calculation does not take into account any profit goals but rather just shows how many procedures need to be done for the wing to cover its expenses and stay afloat. As such, it is likely that a higher level of production will be necessary in order for the wing to achieve a meaningful profit margin on top of just covering their monthly costs.