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Break Even Analysis

The break-even point for a product is the point where total revenue received equals the total costs associated with the sale of the product. A break-even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed to attempting to modify an existing product instead so it can be made lucrative. Break even analysis can also be used to analyze the potential profitability of an expenditure in a sales-based business.

Formula

Break-Even ($) = Fixed Costs รท Gross Margin Percentage

Enter Fixed Cost

Enter Gross Margin %

This page uses content from the English Wikipedia. The content of Wikipedia is available under the GNU Free Documentation License.

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