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Episode #8 Break-even point (Language of Business)

The break-even point by definition determines the amount of sales needed to reach a net income of zero. Riding the break-even point can prove to be detrimental, as when growth happens, expenses will increase.

To break free of the break-even point, you must take into account the fixed expenses that occur regardless of income, price of goods or services being sold, and variable costs of the supplies needed to make the product.

You must add up all fixed and variable costs, then divide that by the price of the product in order to find a minimum amount that needs to be sold to reach the break-even point; next, make a goal to overcome that minimum amount!