To reduce a company's break-even point you could reduce the amount of fixed costs. When an automobile manufacturer cuts thousands of salaried positions and closes assembly plants that are not fully utilized, the company is reducing its
Definition of Break-even Point In accounting, the break-even point refers to the revenues necessary to cover a company's total amount of fixed and variable expenses during a specified period of time. The revenues could be stated in dollars (or
9 Nov 2014 Break-even analysis, one of the most popular business tools, is used by companies to determine the level of profitability. It provides companies with targets to cover costs and make a profit. It is a comprehensive guide to help
By inserting different prices into the formula, you will obtain a number of break-even points, one for each possible price charged. If the firm changes the selling price for its product, from $2 to $2.30,
A break-even analysis can help you determine fixed and variable costs, set prices and plan for your business's financial future.