BREAK-EVEN REPORT

Establishes the minimum revenue a company must reach to cover its financial obligations or expenses.

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.

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Without the Break-Even amount for example, the marketing department wouldn’t be able to determine effectively, the minimum sales goal that a company must reach in order to remain operational.