Why is it important for managers to understand the concept of breakeven points?

Why is it important for managers to understand the concept of breakeven points?

Why is it important for managers to understand the concept of breakeven points? Are there any drawbacks to using break-even analysis? If so, explain. If not, explain.

Sources:

Lamb, C. W., Hair, J. F., McDaniel, C. (20180125). MKTG, 12th Edition

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