Monday, 31 January 2011

the BIG question

Why is it important for a business to know its breakeven point?

16 comments:

  1. Dom
    it is important for a business to know it's break even so they know how many sales they need to make their costs back.


    the destroyer Dun knooo

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  2. Neil

    Because then a business knows the point at which there is no profit and no loss, their output will just cover the costs, it is an ideal target for a business first starting up or a small business.

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  3. chelsie;

    it is important for a business to know its break even point because then the business can work out the contribution made from the sale of each unit. :) <3

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  4. shanice:
    its important for a business to know its breakeven point because the business will be able to work out the sale of each unit.

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  5. It is important for a business to know its breakeven point because the aim of a business is to make a profit and in order to make a profit they need to know how much revenue it takes to outweigh the costs (this point is know as the breakeven point). It also means that they know how many items they have to manufacture and sell in order to break even or make a profit, meaning the business can set targets for sales. Katie

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  6. It indicates what prices the business needs to sell things at to make a profit

    Becky

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  7. This is important for a business because if they do not know their breakeven point they will not know if they could be making possible profit. By knowing their breakeven point they can find out what they are making and if they are actually making a profit while covering the costs.

    Jeremy.

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  8. It is important for businesses to know their breakeven point because it gives the business a target to aim towards and not to go bellow. It gives them an idea of how much loss and how much they will need to produce a profit, and how much they will loose in order to have a loss of profit.

    Megan :)

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  9. Its important for a company to know their breakeven point as it enables the company to know how much money they need to earn in order to pay off all costs. They can use this margin to find out how much money they'd need to earn to make a profit.
    :D.

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  10. a business should know its break even point because they need to know how many sales have to be made before they start making a profit. then they will also know how much money they have to spare to put in to other things

    hark ytboi

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  11. it is important for a business t know its beakeven point beacause the business will be able to work out the sale of the each other
    antony

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  12. slade

    it is important for a business to know its breakeven point because so they know making a loss to making a profit

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  13. It is mportant for a business to know its breakeven point because every unit sold counts as a profit, and the breakeven point provides a focus for a business and it helps them know whether their forcasted sales will produce a profit.

    MARCUS

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  14. its important because its the point that a business turns from making a loss to make a profit.

    ellie jarvis

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  15. It is important for a business to know its breakeven point because that will make sure they do not go below it and lose money, they will be able to make sure they are making a profit.

    Zoe

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  16. it is important to know your breakeven point because hen you can keep track of how much profit you make and to make sure you do not go below it as you will be loosing more than you make...

    jack lamport

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