There are several ways to achieve higher levels of profitability: reducing costs, increasing sales, increasing productivity, increasing efficiency, expanding into new markets, and developing new products or services. But, how do you know their impact on your profits?
The break-even analysis lets you determine what you need to sell, monthly or annually, to cover your costs of doing business(your break-even point). Break-even analysis is an expected component of most business plans, especially for startup companies.
…a Business Losing Money
…a Business at Break-Even
…a Business Making Profits