Glossary entry (derived from question below)
English term or phrase:
fixed fee at margins
English answer:
fixed fee at the breakeven point
Added to glossary by
Murat Yildirim (X)
Dec 9, 2005 13:03
18 yrs ago
1 viewer *
English term
fixed fee at margins
English
Bus/Financial
Finance (general)
XXX receives a fixed fee at margins with the hope that the increased economies of scale savings over time will increase profits for XXX and lower the cost to YYY.
I am unsure as to the exact meaning of the above passage. What is the relation between the 'fixed fee' and the 'margins'? Whose margins? What kind of margins?
I am unsure as to the exact meaning of the above passage. What is the relation between the 'fixed fee' and the 'margins'? Whose margins? What kind of margins?
Responses
5 +5 | fixed fee at the breakeven point | Murat Yildirim (X) |
4 | at margins means with a profit | Anna Maria Augustine (X) |
4 | fixed fee with mininal / negligible profit | Nikos Mastrakoulis |
Responses
+5
9 mins
Selected
fixed fee at the breakeven point
Jakub,
It is basically saying that they are willing to earn a small fixed fee because they hope to get more through economies of scale (by producing and/or selling more, that is).
It is basically saying that they are willing to earn a small fixed fee because they hope to get more through economies of scale (by producing and/or selling more, that is).
4 KudoZ points awarded for this answer.
Comment: "Thank you very much :)"
2 mins
at margins means with a profit
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Note added at 5 mins (2005-12-09 13:08:46 GMT)
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the profit/margins are for xxx
the kind of margins depends on the amount of profit included in the fixed fee
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Note added at 5 mins (2005-12-09 13:08:46 GMT)
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the profit/margins are for xxx
the kind of margins depends on the amount of profit included in the fixed fee
17 mins
fixed fee with mininal / negligible profit
As Anna Maria implied, margins = profit expressed as a percentage in relation to cost.
In this case, as Murat says, it means 'with nearly zero profit' (hoping, of course, that over time cost will come down and, correspondingly, profit, or 'margins', will go up.
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Note added at 20 mins (2005-12-09 13:23:53 GMT)
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Correction: margins = profit expressed as a percentage in relation to *price* or *fee*. Often also margins = profit expressed as an absolute amount per item sold.
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Note added at 1 day 16 hrs 4 mins (2005-12-11 05:08:23 GMT)
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Just noticed: should read "minimal", not "mininal", of course...
In this case, as Murat says, it means 'with nearly zero profit' (hoping, of course, that over time cost will come down and, correspondingly, profit, or 'margins', will go up.
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Note added at 20 mins (2005-12-09 13:23:53 GMT)
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Correction: margins = profit expressed as a percentage in relation to *price* or *fee*. Often also margins = profit expressed as an absolute amount per item sold.
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Note added at 1 day 16 hrs 4 mins (2005-12-11 05:08:23 GMT)
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Just noticed: should read "minimal", not "mininal", of course...
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