Calculate your breakeven point from "summary" of Seven Steps to a Successful Business Plan by Al Coke
To effectively plan for the financial success of your business, it is crucial to determine your breakeven point. This is the point at which your total revenue equals your total expenses, resulting in neither profit nor loss. Calculating your breakeven point allows you to understand the minimum level of sales needed to cover your costs and start generating profit. To calculate your breakeven point, you need to consider your fixed costs and variable costs. Fixed costs are expenses that remain constant regardless of the level of sales, such as rent and salaries. Variable costs, on the other hand, fluctuate based on the quantity of products or services s...
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