Break-even analysis


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Break-even analysis

An analysis of the level of sales at which a project would make zero profit.

Breakeven Analysis

An analysis of a product or company's sales required to neither lose money nor make a profit, but simply to cover costs. A company needs to at least break even in order to make the expense of producing a product worth the effort. As a result, breakeven analysis is an important feature in evaluating the risk of an activity. Breakeven analysis calculates the relationship between the fixed costs, variable costs, and profit of the product.
References in periodicals archive ?
He said the break-even analysis is misleading because it ignores the appreciation of the property and other financial savings, such as tax breaks.
Even though break-even analysis may have been conducted, the forecasts may have been more of a dream than reality.
The two most common analysis equations are the contribution margin ratio and the break-even analysis.
In addition to the applications described above, a break-even analysis can be used to determine what price must be charged when the volume of testing is fixed.
We help them put together a solid plan including a break-even analysis.
Using a variable foundrymen can control, a new approach to break-even analysis has been developed.
A break-even analysis also should be done to determine how long the donors would need to live to make the transaction advantageous.
Enterprise activities, such as child nutrition and fee-based programs, can be more efficiently managed with an effective accounting information system and break-even analysis.
Once the break-even point is determined, a break-even analysis can be done by the owner as soon as monthly sales are known.
Yet break-even analysis can be an easier and more effective way to deal with the saturation level.
The lineup includes advice on ways to establish recession-ready financing by Snap Fitness' Peter Taunton and tactics for helping franchisees who may be experiencing financial stress, by Church's Chicken's Doug Pendergast, CFE, and utilizing break-even analysis by CIT Small Business Lending's Chris Reilly.