Break even has to be calculated so that you know if your business can be successful, and if it isnt then you need to know what changes you need to make to be able to cover your costs and carry on running. Break even is also calculated so that the business runner can know exactly when he is making profit. If your break even point is a lot higher than your sales forecast then you need to make changes so that you can reach the break even point, for example, raising your selling price, although this may be risky and can cause customers to choose another place to have the services you provide. You could also cut down your price which makes your break even point even higher, but more people may come to buy from your business.