What is break-even analysis?
Any financial action has its own set of market reactions. However, unlike the laws of science where the reaction is equal and opposite, the same cannot be said about the world of economics. Any entity may invest some ‘x’ amount.
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A stable and strong financial tool, the break-even methodology is a handy mode to understand the market sensitivities as reflected via the dynamism between fixed costs, variable costs, net revenues, and profits.
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