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Small Business Break-even Point

Break-even Point

 

One bit of information every business owner and start up should know is there break-even point.  The break-even point is the juncture at which revenue is equal to expenses.  This information helps business owners understand the number of units they need to sell in order to cover expenses. In the example above we arrive at the break even point by dividing the total fixed expenses of $1,000 by the per unit price which is $20.  The result of 50 represents the number of units which need to be sold in order to break even.

About the author

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Othniel Denis is currently Principal of Excellent Ones Consulting LLC. He brings with him a background in finance, training, and information management systems. Prior to opening his own firm, Othniel spent the last 13 years in finance as an Analyst at organizations like New York University, Nassau County Government and Brookhaven National Laboratory to name a few...

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