The customer ultimately decides benefit, value and sales. When looking at break-evens it is also helpful to look at fixed and variable costs. Fixed overhead is steady and can be factored in quite accurately. Variable costs are not as simple to calculate but in many industries variable costs follow certain percentages or ratios so they are easier to project. It is also helpful to look at break-evens on a daily, weekly, monthly and yearly basis.
Many construction companies base their bids on when they hit their yearly break-even.
Once that point is reached they can make their bidding more competitive to stay busy and profitable. I have found if very useful to let personnel know the break-even figures. This gives them a very clear picture of expenses and what it actually takes to run the business. Sharing break-even figures also reduces the perception that ownership is getting rich off of the employees efforts. If you do not know your break-even point ask your accountant to show you.