There is more to a business enterprise than providing goods and services to customers. A business enterprise has the goal of making profit from the sale of goods and services to customers. It is also involved in handling issues like cash flow management, records keeping, determining breakeven point etc.
A business enterprise should be able to determine its breakeven point, which is a point where it neither makes profit or loss. Determining breakeven point would ensure that a business enterprise is able to keep track of its cash flow. It is the goal of every business to make profit. Hence, it should be able to determine its breakeven point and avoid being a situation where it would not make profit. The survival of a business enterprise is dependent on the profit it makes. If a business enterprise does not make profit, it would be unable to stand