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Finance for Nonfinancial Managers, Second Edition (Briefcase Books Series), 2nd Edition by Gene Siciliano

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Get to Breakeven First!

Just so we’re on the same page, here are two definitions of breakeven point.

  First, for a product or service, breakeven point is the level of sales volume that, when reached, has effectively earned enough sales dollars to pay for all the costs of developing, producing, and delivering the product or service being sold. Put another way, it’s that point at which the seller is neither ahead nor behind on the income statement as a result of selling the product or service.

  Next, for an enterprise or company as a whole, breakeven point is the level of sales volume of all products and services sold by the company that, when ...

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