Tag Archives | Break-Even Analysis

How to Obtain Break-Even Point ? (2 Methods) | Economics

There are following two methods to obtain break-even point: 1. Mathematical Method 2. Graphical Method. 1. Mathematical Method: Let cost be the common variable in two situations 1 and 2, then cost equations will be; C1 = f1(x)... a function of (x) ...(1) C2 = f2(x)... another function of (x) ...(2) C1 – may be as total cost, annual cost, [...]

By |2016-11-02T06:00:08+05:30November 2, 2016|Break Even Analysis|Comments Off on How to Obtain Break-Even Point ? (2 Methods) | Economics
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Determination of the Break-Even Point

The break-even point means the level of output or sales at which no profit or loss is achieved. It indicates the posi­tion at which marginal profit or contribution is just sufficient to cover fixed overheads. In other words, a business is said to break-even when its income equals its expenditure. When production exceeds the "Break-even point", the busi­ness makes a [...]

By |2016-11-02T06:00:08+05:30November 2, 2016|Break Even Analysis|Comments Off on Determination of the Break-Even Point
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