Answer to Question #321165 in Management for management

Question

calculating break even point and margin of safety in both units and revenue for the two years 2018 and 2019 and briefly comment upon the results

Answer 1

A break-even point is that position where a business entity can recover its cost through the revenue it generates from the sales. Here, we can say that the company is now able to meet its expenses through its sales revenue.

A break-even analysis reveals when your investment is returned dollar for dollar, no more and no less, so that you have neither gained nor lost money on the venture.