Why is it important to understand Break-even point in Business Decisions

Break-even point is important for business decisions: As break-even point marks the very lowest level to which activity can drop without putting the life of the company in jeopardy. By understanding break-even analysis, a firm can decide on which following strategies to use in order to increase profit or decrease loss like: Increase sale volume Increase selling price per unit Decrease fixed costs Decrease variable cost per unit