How much your sales can fall before you start losing money. A high margin indicates a robust business.
↳ Analogía
With a 30% SM, your sales can drop 30% and you're still not losing. Below 15%, be careful.
Ejemplo numérico
Margin > 30%: very robust. 15–30%: acceptable, monitor closely. Below 15%: risk zone — a bad season knocks you out.
Forecast sales: 300 units/month. BEP: 200 units/month. → Margin = (300 − 200) / 300 = 33%. Sales can drop up to 33% before you start losing.