break-even-point

Conclusion: The new break-even-point is within the maximal capacity of the workshop.

Chapter 8 1994

The break-even-point is the level of sales at a given price where you make neither a profit nor a loss

Chapter 8 1994

On the following page, you see an example how the calculation of break-even-point, capacity utilization, break-even-price and breakeven-point with loan repayment could look like.

Chapter 8 1994

At the break-even-point of 40’000 tiles per year, only (40’000 * 100/60’000) = 67% of the maximal capacity is used.

Chapter 8 1994

At the break-even-point, the total income is the same as your total costs - you make neither a loss nor a profit.

Chapter 8 1994