Cover Your Nut?

What does Cover Your Nut really mean?


To cover all costs relative to income.  The break-even report shown in this book is a tool used to see at what point in the volume of revenue the company will cover all costs.

A story goes that a Peddler in the days of the "Old West" was driving his wagon into a western town with a wagon full of goods.  He stopped in front of the hotel and when the innkeeper came out he said, "I have this wagon full of goods but no money and I need a room for the night."  The Innkeeper said, "You take off that wagon wheel Nut and give it to me, when you've sold enough goods you have covered your Nut."