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Monday, August 21, 2017

How to determine breakeven point when you prepare a business plan

The operations section of the business plan should give the reader the critical success factors affecting how the company creates value for the stakeholders of the business. The most important of these factors is the breakeven point;

 that is, the point at which unit sales equal operating costs. 

The breakeven point determines how many units of the product must be sold to break even, to cover the cost of production, so that the following units will produce a profit. It identifies the point at which the business will begin to make money. 



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