what are the advantages of break even point analysis?

Question

what are the advantages of break even point analysis?

Answer 1

"Break-even analysis is a useful tool to study the relationship between fixed costs, variable costs and returns. A break-even point defines when an investment will generate a positive return and can be determined graphically or with simple mathematics. Break-even analysis computes the volume of production at a given price necessary to cover all costs. Break-even price analysis computes the price necessary at a given level of production to cover all costs."

"The main advantage of break-even analysis is that it explains the relationship between cost, production volume and returns. It can be extended to show how changes in fixed cost-variable cost relationships, in commodity prices, or in revenues, will affect profit levels and break-even points. Break-even analysis is useful when used with partial budgeting or capital budgeting techniques. The major benefit to using break-even analysis is that it indicates the lowest amount of business activity necessary to prevent losses."

You can read more at the links provided, with examples and illustrations.

Answer 2

Advantages Of Break Even Analysis

Answer 3

I am going to vote for a third party presidential candidate rather than throw my vote away by going with the either of two major parties. If enough of us in the under 35 group do likewise, the current round of shallow ineffective politicians will recognize that our vote is no longer a 'given'. Until such happens, those in Washington will continue blissfully along, having no concern to the fact that they are going to pass along a federal government budget deficit which will seriously reduce our standard of living. This while pulling more from our paychecks to fund a ponzi scheme humorously called 'social security'. A program that will no longer exist -along with our 'contributions'- long before we reach a retirement age. Why vote yourself into a third world existence? Instead, enter a vote which tells both parties to cram it.

Answer 4

after break even you know you will start making a profit if your business continues to improve.

At break in you know your assets equal your expenses so you know your bills have been paid.

At break in you will understand that if you determined you would have made a profit before that time and didn't then your expenses were too high and you need to start cutting some of the expenses or increasing the price of your product to make a bigger profit.

Answer 5

discuss the advantages of performing break analysis. give relevant examples to support the answer.

pls help me with this question!

Answer 6

very confusing task. seek with the search engines. that can help!

Answer 7

hard stuff. query on yahoo and bing. this could help!