Monday, 31 January 2011

the BIG question

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

18 comments:

  1. TommyAnderson:

    It is important for a business to know it is at break even point because they are not making money or losing money so they then need to plan how to make as profit as soon as possible, it is like a warning really.

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  2. 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.

    Dan

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  3. it is important for the business so that they know when they are not gaining profit or loosing profit. they will know whether to try to sell more or not.

    Liam Wright

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  4. it is important that a business know there breakeven point because becasue there are not making money or losing money do they need to make a plan to sort it out !

    Dan

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  5. It is important so they can know how much money they need to make so as to not make a loss. Tim Taylooooooooooor.

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  6. Sophie Turner - It is important to know the breakeven point so that the business knows how much they need to earn to reach it. This can then tell them how many products they need to sell so that they can breakeven and then make a profit. It is imperative that all businesses know when they start making a profit.

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  7. Holly Lawson says:
    It is important for a business to know its breakeven point because:
    -It helps the business to set prices
    -To help the business raise finance through investment
    -So that it can arrange an overdraft or loan
    -It helps the business to decide whether or not it should produce a product/service
    -they need to know when they will start making a profit
    -they can help decide prices and predict profits
    -makes company aware of its saftey margin
    -they know how many products they need to sell to make a profit etc therefore they know whether they need to promote their product more

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  8. Because the breakeven point shows how many sales the company need to make cover their costs and not make a loss which enables them to stay in business. It gives the business opportunity to see if they need to take action to increase their sales.

    Chris Tyson

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  9. 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.

    Charlie Cooper ☺

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  10. tyanni; it is important for a business to know its breakeven point so that they know how much money should be going in and out of the business. this prevents the business from losing vast amounts of money and also helps to monitor profits.

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  11. it is important for a business to know its breakeven point because this will enable them to keep track of how much profit and loss they are making. if they do not know their breakeven point then they for example could lose a large amoutnof money without realizing.

    izzi gray

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  12. The breakeven point allows to business to see if they are making a loss or a profit and by how much.

    Anthony Bench

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  13. This will enable the business to know how much stock they need to sell to enable them to not make a loss. If the company know this then they would be able to have offers and advertise if they need to create more sales to not have a loss. If the company do not meet breakeven regularly, then the company may go into recevership.
    Nick Roper

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  14. It is important that businesses know their breakeven point so that they can set prices to ensure that they breakeven etc. Matt Fuller.

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  15. it is important to know its break even point because they need to know when they start earning more than they pay.

    gianni

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  16. Ollie Manser:
    It is important for a business to know its break even point because if it i not balanced than the business could be making a loss.

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  17. Natasha Ewart-Jones

    It is important for a business to know its breakeven point so they know when the company is either making a profit or a loss. Once they have broken even they will know the revenue is the same as their costs. It will also allow them to make a target for how much revenue they wish to make so they can make a profit.

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  18. It is important for a busines to know there break even point so that the company knows the fine line between faiure and sucsess and the line of debt and the level of staying a float :)

    Tom Common

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