how do businesses use the break even point in break even analysis 
the break even point bep helps businesses with pricing decisions sales forecasting cost management and growth strategies a business would not use break even analysis to measure its repayment of debt or how long that repayment will take the bottom linebreak even analysis or the comparison of sales to fixed costs is a tool used by businesses and stock and option traders it is essential in determining the minimum sales volume required to cover total costs and break even beyond the break even point it s all profit that is sales will exceed expenses break even analysis helps businesses choose pricing strategies and manage costs and operations in stock and options trading break even analysis helps determine the minimum price movements required to cover trading costs and make a profit traders can use break even analysis to set realistic profit targets manage risk and make informed trading decisions 