oboloo Glossary

Breakeven Analysis Formula

oboloo Glossary

Breakeven Analysis Formula

Breakeven Analysis Formula is an important financial tool that helps businesses understand the point at which their revenues will equal their costs. Specifically, it allows a business to determine how many units of product or services must be sold in order to begin making a profit. The formula also helps businesses to identify potential cost and revenue improvements that may be required for profitability. Put simply, the Breakeven Analysis Formula can help businesses focus on the most profitable strategies for their operations.