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About Break Even Point
The Break-Even Point is a dollar figure calculated that represents the level of sales required for a company to meet its operating expenses, thereby breaking even.
Interpreting the Calculator Results:
If Break Even Point increases over time:
An increasing Break Even Point is generally a negative sign, showing that the company will have a more difficult time reaching the point at which it breaks even during the course of its operations.
If Break Even Point decreases over time:
A decreasing Break Even Point is generally a positive sign, showing that the company will have a less difficult time reaching the point at which it breaks even during the course of its operations.
If Break Even Point stays the same over time:
An unchanged Break Even Point may indicate the company”s ability to reach the point at which it breaks even during the course of its operations has remained the same.