"Breakeven analysis isn't very useful to a company because companies need to do more than break even to survive in the long run. Explain why you agree or disagree.© BrainMass Inc. brainmass.com June 4, 2020, 4:40 am ad1c9bdddf
Breakeven analysis is very useful to a company because it helps in determining the volumes required to achieve no profit- no loss situation. It is a useful tool of management accounting. It is calculated by following formula:
= Fixed costs/ Contribution Margin ...
The solution discusses the usefulness of breakeven analysis in a positive viewpoint. References are included.