Break even point is a key concept in business that every entrepreneur should be familiar with. Understanding your break even point can help you make informed decisions about pricing, expenses, and profits. It is the point at which total revenue equals total costs, and beyond which you start to make a profit.

Calculating your break even point can be a bit complex, as it involves taking into account fixed costs, variable costs, and your selling price. However, it’s an essential factor in determining your business’s success. By figuring out your break even point, you can identify areas where cost savings can be made, assess changes in your pricing strategies, and determine your business’s growth potential.

Therefore, if you are running a business or thinking of starting one soon, it would be wise to familiarize yourself with the concept of break even point and how to compute it. This way, you can design and implement a sound business plan that helps you achieve your objectives profitably.