【A.05.03】Is the break-even higher the better or lower better?

Briefing Note
Reading comprehension is a skill that empowers lifelong learning intelligence for a better self.
The breakeven point refers to..

✅ ..the level of sales or revenue at which a business or project covers all of its costs and starts making a profit.


A lower breakeven point is..

✅ ..generally better because it means that a business or project can start generating profits sooner and with less risk.


If the breakeven point is high..

✅ ..means that a business or project requires a large number of sales or revenue before it can start making a profit.

✅ ..this can be risky because it may take a longer time to achieve the required level of sales, which increases the likelihood of running out of cash or facing greater financial difficulties.


A lower breakeven point indicates that..

✅ ..a business or project can start generating profits with a smaller number of sales or revenue, which can be achieved more quickly and with less risk.

✅ ..greater flexibility and resilience to the business or project as it will be capable of sustaining a certain level of fluctuations in revenue (sales income) without facing greater financial difficulties.


While listening attentively to the presentation..

Here is the briefing note for reading comprehension..