Author: xtw183876e42

Calculating the break-even point (BEP) is essential for businesses to understand their financial health. The BEP indicates the sales volume at which total revenues equal total costs, meaning the business neither makes a profit nor incurs a loss. This metric helps entrepreneurs and managers make informed decisions regarding pricing, budgeting, and overall strategy. To calculate the break-even point for a service business, you need to identify your fixed and variable costs. Fixed costs include expenses such as rent, salaries, and utilities that do not change with the level of service provided. Variable costs are those that fluctuate based on the…