It can assess how long it will take to meet the total revenue || You can judge if the fixed/variable costs can be changed
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Strengths Of Break Even
Can predict profit || Easy and quick to calculate || Can calculate the amount of sales you need to meet your target
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Weaknesses Of Break Even
Selling Price always has to stay the same || Assumes every product will be sold || Variable costs may change if bought in bulk, or supplier may change prices
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Other cards in this set
Card 2
Front
BreakEvenOutput = Fixed Cost / Contribution per unit
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