Purchase Solution

Sensitivity and Break-even Analyses

Not what you're looking for?

Ask Custom Question

Describe how Sensitivity Analyses interact with Break-even Analyses.

Purchase this Solution

Solution Summary

The solution discusses the relationship between sensitivity and break-even analyses.

Solution Preview

Break even point

Break even quantity = Fixed costs/Contribution per unit
Here contribution per unit= Sales per unit -Variable cost per unit
Break even point is the point at which gains equal losses.
Break-even analysis is basically an analytical technique for studying the relations between:

* fixed costs;
* variable costs; and
* profits.
Break-even analysis is a device for determining the point at which sales will just cover total costs.
or the break even point for a product is the point where total revenue received equals total costs (TR=TC). A break even point is typically calculated in order to determine if it would be worthwhile to sell a proposed product, or to try to figure out ...

Purchase this Solution


Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Basics of corporate finance

These questions will test you on your knowledge of finance.