We have years 1, 2 and 3 where the revenues are 100, 350 and 700 with costs
of 200, 400 and 600 respectively. Therefore, the profits are started to flow
from year 3.
I need to find out the formula which could calculate the fraction of the
year in which the costs will equal to reveues.
Your overall costs (1200) exceed your overall revenue(1150) so you are still
in a loss situation.
If you plot this data and add predicted data for year 4 you will see when
real profit occurs. For example, if costs for year 4 are 800 and revenue is
1200., overall profit is reached about February of Year 4.
Adding the trendlines/equations for both cost & revenue will help.
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