2006-07-10 06:31:15 · 2 answers · asked by Heartache 2 in Business & Finance ➔ Investing
thanks! can you help me on my other post? Really appreciate it!
2006-07-10 06:40:30 · update #1
The point in which you have no losses or gains. Say you sell widgets @ $10 ea. They cost you $5 ea. and you pay $50 in rent. Your breakeven is 10 widgets (10 widgets x $5 gain each = $50, which are used to pay for rent). No gain but no loss...
2006-07-10 06:37:29 · answer #1 · answered by jlcaooscl 3 · 1⤊ 0⤋
Break-even analysis helps you determine at which level of production you can cover all your costs.
Let's say you are an absentee owner of a car dealership and you usually make $1,000 on each car your single salesman sells. Your monthly overhead (including rent on the lot, interest on inventory financing, and salesman's salary) is $10,000. So you need to sell at least 10 cars every month to be able to pay your landlord, your bank, and your salesman. If you sell more, you actually turn a profit.
2006-07-10 06:50:42 · answer #2 · answered by NC 7 · 0⤊ 0⤋