(Optional) Explain break-even point.

Explanation should include the concept of break-even as the point when cash flow becomes positive, indicating that the business is beginning to show a profit.

Process/Skill Questions:

• How does a company determine the break-even point for a product/service?
• Why is it important to determine break-even points before a business starts operation?
• How does seasonality affect the break-even point projections?
• When is equilibrium achieved?
• What information is needed to calculate the break-even point?
• What is the break-even analysis formula?
• How does an entrepreneur use a break-even analysis when planning a business canvas model?
• How does an entrepreneur use break-even pricing to gain market share and drive competitors from the marketplace?