Answer:
Starting a business often carries risk. As the saying goes, "You have to spend money to make money."While that's not always true, there is one very effective way to lower your risk: do a break-even analysis. A break-even analysis will tell you exactly what you need to do in order to break even and make back your initial investment.
If you run a business—or you’re thinking about starting one—you should know how to do a break-even analysis. It’s a crucial activity for making important business decisions.
What is break-even analysis?
A break-even analysis is a useful tool for determining at what point your company, or a new product or service, will be profitable. Put another way, it’s a financial calculation used to determine the number of products or services you need to sell to at least cover your costs. When you’ve broken even, you are neither losing money nor making money, but all your costs have been covered.
For example, a break-even analysis could help you determine how many cell phone cases you need to sell to cover your warehousing costs. Or how many hours of service you need to sell to pay for your office space. Anything you sell beyond your break-even point will add profit.
There are a few definitions you need to know in order to understand break-even analysis.
Fixed Costs: Expenses that stay the same no matter how much you sell.
Variable Costs: Expenses that fluctuate up and down with sales.
Why you must do a break-even analysis
Why you need to do a break-even analysis
There are many benefits to doing a break-even analysis.
Step-by-step Explanation:
this is all i know I don't have any solution tho sorry but hope it helps.
