What is break-even analysis and how does it work with cost
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What is break-even analysis and how does it work with cost-volume-profit analysis?
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The solution discusses what is break-even analysis and how does it work with cost-volume-profit analysis.
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A break even analysis is an analysis performed by management to determine the exact point where we break even; where net income equals exactly zero. Management can then determine how many units are needed for production above the break even point in order to make a profit. When we use a break even analysis along with a cost-volume-profit analysis, we are able to see exactly where the company stands ...
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