CORONAVIRUS: The Current Business Challenge
The so called “break-even point” is a relevant concept in business economy. Simply speaking, a company is in break-even point when the number of product units sold equals its Total Fixed Cost, divided by the respective Contribution Margin per Unit (i.e., the difference between the product price and its variable unit cost) In other words, said number of sold products is the minimum the company needs to remain “indifferent”, having neither loss nor profits: higher sales will imply benefits and, on the contrary, lower sales will imply losses...