You still have to compare the demand figure at break even with the market share you think you can capture to judge the worthiness of the project, and you'll have to use your business sense here. But break even gives you a way to attack uncertainty, to get onto the target if not the bull's-eye.
It serves as a substitute for estimating an unknown factor in making project decisions. In deciding whether to go ahead or to skip it, there are always variables to be considered: demand, costs, price, and miscellaneous factors. When most expenses can be determined, only two missing variables remain profit (or cash flow) and demand. Demand is usually tougher to estimate. By deciding that profit must at least be zero, (the break even point), you can then fairly simply find the demand you must have to make the project a reasonable undertaking.
Even though break even is a very useful risk assessment technique and a useful device for testing the sensitivities of business performance, there are also several demerits of break even analysis, though it has the above advantages or uses. The following limitations of break even analysis must be considered: