three ways to run a break-even analysis

how to tell what the profit should be.

by ed mendlowitz
77 ways to wow!

break-even analysis is a budgetary process designed to tell you how much sales are needed to break even, and how much you will make or lose if you exceed or fall short of this “break-even” sales amount. properly used, it can become a very potent tool.

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in a break-even analysis, all costs and expenses must be separated into “fixed” and “variable” categories. designations such as “costs of goods sold,” “selling” or “general and administrative” are irrelevant.