FIXED COSTS, VARIABLE COSTS AND BREAK-EVEN ANALYSIS
Keeping in mind the difference between COST and EXPENDITURE, we now go on to define what are FIXED COSTS and what are VARIABLE COSTS, with the final purpose of being able to determine how to calculate the BREAK-EVEN of the Organization or Entrepreneurship.
THE EQUILIBRIUM POINT becomes an indicator of vital importance, insofar as it directs the Company to achieve its first great objective, which should not be otherwise, to become self-sustaining.
**QUESTION**
What is a FIXED COST ?, What is a VARIABLE COST ?, How is the BALANCE POINT ?, How is the EQUILIBRIUM POINT ?, What is the BALANCE POINT ?, Why is it important Know the EQUILIBRIUM POINT? What variables affect the EQUILIBRIUM POINT ?.
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