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What is the Break-Even Point ?
What is the Break-Even Point ?
The Break-Even Point refers to the amount of sales necessary to cover all expenses (i.e. Profit is zero). The greater your expenses the higher your break-even sales will have to be. Your goal is to make your break-even as low as possible without adversely affecting your business. For example, reducing advertising expenses will certainly reduce your break-even point, but what affect will that have on your business?
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