breakeven analysis

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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.

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.
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Nonetheless, the agency only conducted a breakeven analysis for three of
But the corresponding downside of this is that if additional variable costs are incurred as the store operation becomes more sophisticated or as customer service requires, then the entrepreneur must determine whether or not this approach to breakeven analysis is still valid.
(8) In 2008, the SSA revised its instructions to SSA claims representatives in an attempt to downplay the breakeven analysis, although the tool is still available for potential claimants who request it.
If the breakeven analysis indicates 1,200 units are needed and comparable franchise locations sell 1,000 items monthly, the project it may not be feasible.
This model includes breakeven analysis, going concern, feasibility study, and the business plan.
So are budgets and forecasts including variance analysis, breakeven analysis, and "pricing training courses."
Managerial textbook treatments uniformly incorporate linear cost and revenue functions to motivate discussions on breakeven analysis. Applied linear breakeven analysis can serve as a first approximation to real-life business settings.
As such, it is deducted from the sales figure for purposes of conducting a breakeven analysis, giving an adjusted total sales figure of \$1,412,834.
The combination of declining regular tax rates and the variety of capital gains rates has created a degree of uncertainty in planning for capital gains income, Nevertheless, significant tax saving opportunity can be identified by using simple breakeven analysis tools.
For this breakeven analysis, both foundries' investments are financed by a loan with payments calculated at an 8.5% interest rate.
The recommendation includes the full rate and fees for the new loan and a breakeven analysis to let the customer know how long it would take to recoup the closing costs.
Run a P/L breakeven analysis. Ask others what sort of lifts they've seen from similar types of tests.

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