If you no longer held the belief that the negative managerial scenarial theory was an accurate reflection of reality, what other beliefs would you need to change as a consequence?
The breakeven point is the point when the profit of the company is equal to $0. It is the point when sales equals fixed costs and variable costs. There are two different methods that can be used to calculate the breakeven point, the equation method and the contribution margin method.
The equation method formula is as follows: Sales = Variable Costs + Fixed Costs + $0