The break even point is the number of units a company must sell such that total revenue equals the total cost. The total cost is usually made of the fixed and variable components.
The number of units required to break even ( that is to make no loss nor gain) is a factor that determines the total sales and the variable cost. It however may not affect the fixed cost.
A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.
