To analyze the break-even point and profitability timeline for both options

Abstract

The primary objective is to provide decision-makers with quantitative financial metrics that enable informed selection between competing investment alternatives, considering factors such as initial capital requirements, cost structures, revenue projections, and the timeline for achieving financial sustainability. This research addresses the gap between theoretical financial analysis frameworks and practical application in comparative investment scenarios. The challenge lies in integrating multiple financial metrics—including fixed costs, variable costs, contribution margins, and market demand projections. cost classification into fixed and variable components for both options, calculation of contribution margin and contribution margin ratio.