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Breakeven point is the amount at which sales revenue generated by products with total cost of the product. After sales of the products that reach the breakeven point, now started to make profit.
This method suitable for mass production enterprises of household items, clothing, ... the number of pig. This method is difficult to use in determining the breakeven point. The determination of the break is too low will lead to a too high valuation (overpricing) or determine the breakeven point too high will lead to a very low valuation (underpricing). Enterprises should also calculate the amount of supply, demand and the level of competition to define themselves first reasonable break-even point in order to achieve the highest profit.
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