ECONOMICS

Detailed explanation-1: -A low breakeven point means that the business will start making a profit sooner, whereas a high breakeven point means more products or services need to be sold to reach that point. So, if your breakeven analysis reveals a high breakeven point, then you might want to consider: If any costs can be reduced.

Detailed explanation-2: -The correct answer is ‘True. ‘ Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. If revenues minus all expenses (fixed and variable, and including cost of goods sold) equals zero, you are at the break-even point.

Detailed explanation-3: -Break-even point This is the point where your total revenue (sales or turnover) equals total costs. At this point there is no profit or loss-in other words, you ‘break even’. Knowing your break-even point can help you make a decision about your selling prices, set a sales budget and prepare your business plan.

Detailed explanation-4: -Break-Even Decrease The result of is a decrease in your break-even point. This means your business must generate less revenue to break even after you increase the contribution margin for your products than prior to the contribution margin increase.