What is Break-even analysis useful for anyway?

What does Break-even calculate? Here is a Break-even chart. It represents a 24 day period. Break-even is when a business is not making any losses or profit, seen in the chart above at 11 days. It can be seen that the yellow total costs line, is the same angle as the variable costs line, plus fixed costs. It also can be determined, that the blue shaded are represents the magin of safety as after that all costs are paid. What is Margin of Safety? The margin of safety is how much additional units you have sold in a given period. For… Continue reading What is Break-even analysis useful for anyway?