[IMGCAP(1)]One of the best tools to evaluate a business and get a quick handle on the knowledge of the owner or manager is the break-even analysis.

Break-even analysis is a simple calculation that tells how much sales are needed to break-even, and how much will be lost or earned when sales fall short of that amount or exceed it. A key part of this is to determine the “product lines” a business has and its direct cost structure.

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