How to Use Break Even Analysis for Decision Making?
Entrepreneurs can use break-even analysis to make various business decisions:
Launching New Products: Assess the feasibility and required sales volume to ensure profitability. Pricing Adjustments: Evaluate the impact of price changes on the break-even point and overall profitability. Cost Reduction: Identify opportunities to reduce fixed or variable costs to lower the break-even point. Investment Appraisal: Determine the viability of new investments or projects by analyzing their break-even points.