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The video tutorial explains how to calculate the break-even point for your business using words, graphs, and formulas. The break-even point is the sales volume where neither profit nor loss is made, or where the Contribution Margin equals Fixed Cost. Contribution Margin increases with each unit sold, while Fixed Costs remain constant. Examples of Fixed Costs include rent, depreciation, and research and development expenses. Improving profitability in your business involves taking actions to reach the break-even point.
