Break even
Even if you skipped the first 22 chapters of this book and started reading here, you will be aware that practically every business incurs costs even if it is not making any sales. There are fixed costs – rent, salaries, and so on – that have to be paid regardless. It hardly needs to be said that you need to know the level of sales you must achieve in order to cover these fixed costs, to avoid making a loss. The point at which you are moving from loss to profit is known as break even.
Beanies describe the analysis discussed here as cost-volume-profit (CVP) or profit-volume(PV) analysis. Break even works for me.
To state the obvious, you break even when you just cover the costs of buying or making the product (variable costs) and ...
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