What you’ll learn to do: calculate the break-even point, where profit will be equal to $0, using information from financial statements
In this section you will learn to calculate the point where the amount of income you earn results in neither a profit nor a loss—and “breaks even.”
The specific things you’ll learn in this section include:
- Define the break-even point
- Differentiate between fixed and variable costs
- Calculate the break-even point
- Calculate the contribution margin
- Calculate the contribution margin ratio
- Calculate the margin of safety
