Break-Even Analysis

The Break-Even analysis is a critical component of the daily management of a business. Essentially, it establishes the minimum revenue a company must reach to cover its financial obligations or expenses. The Break-Even Point is also referred to as the “Zero-Profit Point”.  It is very versatile and can be used to support many managerial decisions. Without the Break-Even points for example, the marketing department wouldn’t be able to determine effectively, the minimum sales goal that a company must reach in order to stay afloat.

Break-Even Points

  • The Break-Even Percentage
    • The Percentage of your Revenue needed to cover your expenses
  • Days Per-Month to Break-Even
    • The minimum number of days for each period you needed to operate to cover your Expenses
  • Break-Even For Total Period
    • The minimum total amount needed for each period to cover your expenses
  • Monthly
    • The minimum amount needed every Month for each period, to cover your expenses
  • Weekly
    • The minimum amount needed every Week for each period, to cover your expenses
  • Daily
    • The minimum amount needed every Day for each period, to cover your expenses
  • Hourly
    • The minimum amount needed every Hour for each period, to cover your expenses

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