Break Even Analysis

Break Even Analysis

Breakeven Analysis

A mathematical procedure for investigating the relationships amidst a firm's repaired costs, profits, and variable costs. Financial analysts are especially interested in how changes in yield and sales will translate into changes in earnings.

 

Discussion

An analysis of a merchandise or company's sales needed to neither lose cash neither make a earnings, but simply to cover costs. A business needs to at least shatter even in alignment to make the expense of making a merchandise worth the effort. As a result, breakeven analysis is an significant characteristic in assessing the risk of an activity. Breakeven analysis calculates the ...