why do business managers need to know break even?
2006-12-08 00:19:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
so you know exactly how much business you have to do before you start makin profit
2006-12-08 00:21:47 · answer #1 · answered by littlehey5 3 · 0⤊ 0⤋
Business managers need to know the break even, because they need to know how many units needs to be sold to be break even. Then this will tell them if they sell less, they are at a operating loss and anything above is a profit. Hope this helps!
2006-12-08 08:22:34 · answer #2 · answered by olivia824 2 · 0⤊ 0⤋
If it is a start-up it is necessary to determine what kind of financing to line-up. Generally you want to take on debt for the shortest time possible, because that will give you the best interest rate. However you want to make sure that you are profitable before you have to re-finance your debt.
For a continuing operation, they need to know the level of sales to avoid lossing money.
2006-12-08 08:25:12 · answer #3 · answered by VATreasures 6 · 0⤊ 0⤋
thanks man i was lookin for answer on this topic too
2006-12-08 10:40:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋