Finance
Breakeven Analysis
Breakeven analysis is an essential tool for management decision
making, which determines when your business will start to make a
profit. It is a combination of fixed and variable costs, which help
you calculate the volume of sales required to at least cover all
your costs. Your breakeven point is where your profit equals zero.
You can even calculate a new breakeven point if, for example, you
decide to install new machinery or office equipment. Knowing your
breakeven point is a must when fixing prices, and enables you to
easily calculate the impact of sales price changes on your bottom
line. The Business Development Experience can show
you how to take control.
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