E. BREAK-EVEN ANALYSIS
The break-even point is the point at which a company's expenses exactly match the sales or service volume.
It can be expressed in:
- (1) Total dollars or revenue exactly offset by total expenses -or-
- (2) Total units of production (cost of which exactly equals the income derived by their sales).
This analysis can be done either mathematically or graphically. Revenue and expense figures are drawn from the three-year income projection.
NOTE: The following (F,G,H) are Actual Performance Statements. They reflect the activity of your business in the past. If your business is new and has not yet begun operations, the financial section will end here and you will add a Personal Financial History. If yours is an established business, you will include the following actual performance statements: