How to estimate Business profits?
World of Finance by M.Vijaya Sai Every Business entrepreneur would like to estimate his/her business profits from time to time and work hard to achieve those targets. Here we will learn to use a powerful tool that estimates Business profits. How a business's profits change as the sales volumes change as well as break even points. Although the purpose of every business may be different but the success of the business is measured in terms of Profitability. The business analyst must accesses: "What is the Break even point?" "What should be the Sales turnover for the period?" "How to cut down on costs and increase profitability?" The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain , and one has " broken even ." Using this tool one can estimate margin of safety and find what sh