Explain the difference/s between the terms of the ‘breakeven point’ and ‘living costs‘ for small business...

Explain the difference/s between the terms of the ‘breakeven point’ and ‘living costs‘ for small business owners. And the impact of the cost of living on the breakeven point.

Expert Solution

The Break-even point is that point that generates no profit or no loss for the business owner. Living cost that cost which is required in order to survive in a particular place. It includes the average price of basic necessities.

Break-even point is from the point of view of running the business and living cost is from the perspective of the business owner's survival.

The breakeven point does not consider the living cost but if it does not cover the living cost of the business owner, then also it will be difficult to keep running the business because the owner will not be able to meet his basic needs.

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ekkarill92 answered 1 year ago

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Explain the difference/s between the terms of the ‘breakeven point’ and ‘living costs‘ for small business...

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Related Solutions

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