FIN 370 Questions - Answered

FIN 370 Questions - Answered - What is the break-even...

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What is the break-even point? The Break-even point is, in general, is the point at which gains equal losses. It is the point where sales or revenues equal company expenses. It is also the point where total costs equal total revenues. There is no profit made or loss incurred at the break-even point. At the heart of break-even point is the relationship between expenses and revenues . The point in business where the sales equal the expenses, and when a product stops costing money to produce and sell, and starts to generate a profit for the company. Breaking even does not return any losses occurred in the past, or build up a reserve for future losses, or provide a return on your investment. What decisions does the break-even point help an organization make? A Break-even point can help a company make important decisions on price setting and determining margins in order to regain costs and determine the point they will begin generating profit. In other words, it allows a business to make projections, for example,
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FIN 370 Questions - Answered - What is the break-even...

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