The break-even point allows the company to determine if your project will be profitable, that is to say will the project generate enough sales to be able to make a profit.
To establish your break-even point, you need to assess all the fixed costs, variable costs, and sales of your business. By determining your break-even point, you know the volume of business to be able to meet your financial obligations. In addition, you can vary your income or expenses to simulate scenarios on your business activities.
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