Hey Ian, could you explain for me what are the advantages and disadvantages of break-even?!
So what are the advantages and disadvantages of break-even?
The advantages are: Break-even shows how many products they need to ensure a profit. It shows whether the product is worthy or not. And it catches missing expenses.
The disadvantages are: The variables costs could change regularly. The business can be unrealistic in their calculations. Most businesses sells more than one product, so the break-even would become harder to calculate.