What is a break even analysis? How to find the break even point?
The new year is a valuable time to perform a break even point analysis. So it’s better to download a free break even point example calculator and start learning how to add net profit to your bottom line. And break even point analysis can help you with this investigation.
Break-Even Analysis is applied to measure the sales revenue volume your company has to make to receive a guaranteed net income, as well:
- It is an excellent instrument for defining the least sales volume,
- Where the company’s net profit is the core criteria of productivity and further planning.
Before we dive into the details of the analysis, it is essential to know what is the Break-Even Point. In business, when your total revenue covers all your operating expenses, which are fixed and variable costs, it is called the Break-Even Point.