SaaS Questions

CFA General
#1

Hello, I have a couple of questions:

  1. Does economies of scale apply to SaaS? If for regular manufacturing, one gets fewer fixed and variable costs per unit as one grows, before potentially sinking into diseconomies of scale, what is the analogue for SaaS?
  2. If for manufacturing, you calculate the breakeven point as: FC/(P-vc), how do you calculate the breakeven point for an SaaS business?

Thanks!