Break-even: the magic word
June 7th, 2009
What does really mean break-even? It is the level at which the company makes neither a loss nor a profit, but just covers it’s fixed costs or overheads. It’s the floating point, at which you know that you are not sinking. In practical terms it could be the level of monthly sales that, once reached, will give you the security of paying your bills, at least for that month. Or for a whole year. Or even how many units you need to sell in order to cover all the fixed cost, to pay all your bills. Read more…
