Practical sheet | REF: FIC1205 V1

The cumulative balance sheet, the dashboard of a project's economic performance

Author: Jean DAUVERGNE

Publication date: March 10, 2013 | Lire en français

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    5. What happens if the quantities sold are lower than expected?

    The product and/or service may not sell well.

    This hazard arises in the event of an unforeseen economic crisis, but also more simply if marketing studies have overestimated the market.

    This situation is by far the most tragic.

    The previous figure shows that the cumulative sales curve is not "taking off", with obvious repercussions:

    • a shift in breakeven point to 4.3 years ;

    • but above all a collapse in the profit generated to 8,000 k€.

    It's obvious: if the profit generated is negative, the equilibrium point has not been reached.

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    What happens if the quantities sold are lower than expected?