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What is a breakeven point and how does that help managers make decisions?

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User Kwagjj
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Answer:

The breakeven point is the level of sales or production where a business neither makes a profit nor incurs a loss. Managers use it to set pricing, assess costs, evaluate profitability, and make investment decisions. It helps them determine the minimum price to cover costs, optimize expenses, compare profitability, and assess investment viability. In summary, the breakeven point guides financial decisions for managers.

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User FZeiser
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