Purchase Solution

Break-even analysis

Not what you're looking for?

Ask Custom Question

1. Discuss the various uses for break-even analysis.

Purchase this Solution

Solution Summary

This question involves the fundamentals of accounting

Solution Preview

Hi there,
<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, ...

Purchase this Solution

Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Basics of corporate finance

These questions will test you on your knowledge of finance.


This tests some key elements of major motivation theories.

Operations Management

This quiz tests a student's knowledge about Operations Management

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.