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    Break-Even Point for Managerial Accounting

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    I need to determine what is meant by the term break-even point in regards to Managerial Accounting? I also need to name 3 approaches to break-even analysis and explain how each approach works.

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    Break Even point in managerial accounting:

    The break-even point is defined as the point where sales or revenues equal expenses. There is no profit made or loss incurred at the break-even point. This figure is important for anyone that manages a business since the break-even point is the lower limit of profit when setting prices and determining margins. The break-even point becomes very important when calculating a strategy for net profit.
    source: http://www.businessknowhow.com/money/breakeven.htm

    The break even point for a product is the point where total revenue received equals total costs associated with the sale of the product (TR=TC). A break even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed attempting to modify an existing product instead so it can be made lucrative. Break-Even Analysis can also be used to analyze the potential profitability of an expenditure in a sales-based business.

    Break-Even Analysis can be used in the evaluation of the cost-effectiveness of a new expenditure for a ...

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    Break-even point

    $2.19

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