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Sagot :
The break-even point is the point at which total cost and total revenue are equal, If the company sells 100 units, its total revenue equals its total costs.
The break-even point is the position at which total cost and total revenue are equitable, implying that your small business has no loss or gain. In other phrases, you've reached the point where the production costs equal the revenues for a commodity.
Discovering your break-even point would then allow you to price your products more effectively. Pricing involves a lot of psychology, but understanding the way it will influence your sales and profits is just as crucial. Especially when it comes to making sure you could indeed pay all of your bills.
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