Business Studies Recap Day 23 - Break Even Analysis

On day 23 of the Year 12 Recap we look at break-even points for a business and why it is important for any business to reach this particular point.

For any private sector organisation, the core objective is to turn over a profit. However, a business can only reach that destination once they have reached the point where a business sells enough products to generate the revenue needed to cover its expenses. Once this point has been reached the business has a sound economic base that it can build upon to start earning a profit. Therefore, the break-even point is often seen as an important milestone of any business’s journey.

Here Jack guides you through the revision slide on break-even analysis: