Break Even Analysis

One of our main topics this week is calculating a break even analysis. This is basically calculating how many items you need to sell, or how much money you need to make in order to cover all of your costs for production/cost of goods and other related expenses.

Here is a pretty good YouTube example and explanation of a break even analysis (its only about 3 minutes).

Let’s have a freestyle discussion on this topic. What are your thoughts on this type of analysis? What experience do you have with anything like this in your work experience in retail, restaurant operations, or other businesses you’ve worked with. Also any comments on how the presenter covered this topic…was the “filling the hole” visual helpful?

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