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Breakeven Analysis

   Also found in: Hutchinson 0.02 sec.
breakeven analysis
A mathematical method for analyzing the relationships among a firm's fixed costs, profits, and variable costs. Financial analysts are particularly interested in how changes in output and sales will translate into changes in earnings.

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.


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Tata offers 63 SimBLs modules that cover business subjects from Accounting-Contribution Margin and Breakeven Analysis, to Fundamentals of Financial Statements.
This analysis can consist of breakeven analysis, or other business cost analysis that could ultimately mean the difference between making a profit and going out of business.
The jury also praised Vaillant's integration of its business planning, consolidation, breakeven analysis, profit and loss, cash flow, balance sheet and variance analysis, as well the seamless integration into the company's IT infrastructure.
 
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