1. Discuss the various uses for break-even analysis.© BrainMass Inc. brainmass.com March 4, 2021, 5:54 pm ad1c9bdddf
<br>Here is your answer:
<br>The Break-even Analysis lets you determine what you need to sell, monthly or annually, to cover your costs of doing business--your break-even point.
<br>The Break-even Analysis depends on three key assumptions:
<br>Average per-unit sales price (per-unit revenue):
<br>This is the price that you receive per unit of sales. Take into account sales discounts and special offers. Get this number from your Sales Forecast. For non-unit based businesses, make the per-unit revenue $1 and enter your costs as a percent of a dollar. The most common questions about this input relate to averaging many different products into a single estimate. The analysis requires a single number, and if you build your Sales Forecast first, then you will have this number. You are not alone in this, the vast majority of businesses sell more than one item, and have to average for their Break-even Analysis.
<br>Average per-unit cost:
<br>This is the incremental cost, or variable cost, of each unit of sales. If you buy goods for resale, this is what you paid, on average, ...
This question involves the fundamentals of accounting