The essential need to know your Break-even Point

         Not knowing your break-even point and volume is like an      airline pilot flying a 757, and only using half the instruments      available in that cockpit.  By knowing your break-even point and 
     volume, you can better position your self for calculating more      accurate pricing, bidding, and mark-ups.  By finding out for            example that your break-even occurs on October 20th (quantity        sold also represents a time line), that could affect how you bid for      the remainder of the year, since you know each additional dollar      of revenue, now adds to the bottom line. 

        The green area represents the profit, while the red area 
     represents the loss.  The flat line is fixed costs like rent, 
     insurance, professional fees, utilities, etc..  The TC line is total            costs, which includes direct costs (labor & material), & variable          costs like supplies, maintenance, advertising, fuel, bank charges,      etc..   

        Some companies, use break-even analysis to even 
     calculate their break-even point by the month, week, day, hour, 
     and product line.  Companies that don't know their break-even
     point and volume, are merely guessing, and guessing in 
     business is gambling.  


Knowing your Break-even Pt.